The key output(s) of the short-run financial planning process are a(n)
A) sales forecast and cash budget.
B) cash budget, pro forma income statement, and pro forma balance sheet.
C) cash budget, sales forecast, and income statement.
D) income statement, balance sheet, and source and use statement.

Question

Quizplus · Accepted Answer

The key output of the short-run financial planning process are a cash budget, pro forma income statement, and pro forma balance sheet. The cash budget provides a detailed forecast of cash inflows and outflows, while the pro forma income statement and balance sheet project the company's financial performance and position, based on the assumptions made in the cash budget. Together, these three statements help the company to plan and manage its finances in the short term.

The Key Output(s) of the Short-Run Financial Planning Process Are