Which of the following statements does not apply to preventing "garbage in, garbage out" when implementing a forecasting game plan?
A) The quality of the financial statement forecasts will depend on the quality of the forecast assumptions.
B) The quantities forecasted within financial statement forecasts will depend on the quantity of the forecast assumptions.
C) Analysts should justify and evaluate the most important assumptions that reflect the critical risk and success factors of the firm's strategy.
D) Analysts can impose reality checks on the assumptions by analyzing the forecasted financial statements using ratios, common-size, and rate-of-change financial statements.

Question

Quizplus · Accepted Answer

This statement is not relevant to preventing "garbage in, garbage out." The quality and quantity of the forecast assumptions are important factors in ensuring accurate financial statement forecasts. Justifying and evaluating important assumptions and imposing reality checks are measures that can be taken to prevent "garbage in, garbage out."

Which of the Following Statements Does Not Apply to Preventing