Carlos wants to know the income potential for his computer consulting business during the next five years.Which of the following would be most helpful?
A)cash flow forecast
B)long-term forecast
C)short-term forecast
D)capital budget forecast

Question

Quizplus · Accepted Answer

A long-term forecast would provide the most insight into the potential income of Carlos's consulting business over the next five years. This type of forecast would take into account factors such as industry trends, economic conditions, and projected growth of the business. A cash flow forecast would be helpful in determining the amount of cash coming into and going out of the business in the short term, but may not provide a complete picture of income potential over five years. A short-term forecast would be even less helpful in this case, as it would only cover a limited period of time. A capital budget forecast would focus specifically on expenditures for large assets such as equipment or facilities, and would not provide much information regarding income potential.

Carlos Wants to Know the Income Potential for His Computer