Financial projections should be limited to the statement of profit and loss to prevent information overload on lenders and investors.

Question

Quizplus · Accepted Answer

Financial projections should not be limited to just the statement of profit and loss. Lenders and investors need a comprehensive understanding of a company's financial performance and future outlook, which can be provided through projections of the balance sheet, cash flow statement, and other relevant metrics. It is important to present all relevant financial information in a clear and concise manner to aid in decision making.

Financial Projections Should Be Limited to the Statement of Profit