Which of the following is TRUE?
A)Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses variable interest rates on debt.
B)Interest expenses are commonly based on a percentage of sales.
C)Depreciation costs are commonly based on a percentage of sales.
D)Forecasting sales is the most important step in financial forecasting.

Question

Quizplus · Accepted Answer

Forecasting sales is crucial in financial forecasting because it serves as the foundation for estimating other financial figures, such as expenses, profits, and cash flows. The accuracy of the entire financial forecast largely depends on the accuracy of the sales forecast.

Which of the Following Is TRUE