Once the projected financial statements are prepared, there is no need for sensitivity analysis to examine the assumptions used in the preparation.

Question

Quizplus · Accepted Answer

Sensitivity analysis is important to examine the impact of changes in assumptions used in the preparation of projected financial statements. It helps to identify the key drivers of financial performance and assesses the level of risk associated with the assumptions used. Therefore, it is necessary to conduct sensitivity analysis alongside the preparation of projected financial statements.

Once the Projected Financial Statements Are Prepared, There Is No