One of the first steps in arriving at a firm's forecasted financial statements is a review of industry-average operating ratios relative to these same ratios for the firm to determine whether changes to the ratios need to be made.

Question

Quizplus · Accepted Answer

This statement is true. Reviewing industry-average operating ratios is one of the initial steps in preparing forecasted financial statements for a firm. It helps to identify the areas where the firm needs to make adjustments to its operations and financial strategy to improve its financial position.

One of the First Steps in Arriving at a Firm's