Financial planning involves estimating projected cash flows, which is useful for all of the following EXCEPT
A) setting internal goals.
B) providing information to shareholders and other external stakeholders concerning the firm's future expectations.
C) estimating the firm's future needs for internal and external financing.
D) auditors to determine if the company's annual report is true and correct.

Question

Quizplus · Accepted Answer

Financial planning involves estimating future cash flows to set goals, inform stakeholders, and estimate financing needs. It does not directly involve auditors determining the accuracy of annual reports, as their role is to audit existing financial statements rather than projections.

Financial Planning Involves Estimating Projected Cash Flows, Which Is Useful