The projected statement of financial position forecasting method would be appropriate if, in a regression of sales on each asset and spontaneous liability, the regression line was linear and passed through the origin.

Question

Quizplus · Accepted Answer

The projected statement of financial position forecasting method assumes linearity and proportionality between assets, liabilities, and sales. If the regression line is linear and passes through the origin, it indicates a direct relationship between the changes in assets and liabilities with sales, making the projected statement of financial position forecasting method appropriate.

The Projected Statement of Financial Position Forecasting Method Would Be