An expected physical or economic condition that dictates the size of one or more financial statement items is a:
A)cash budget.
B)stretch plan.
C)planning assumption.
D)sustainable growth rate.

Question

Quizplus · Accepted Answer

Planning assumption refers to the expected physical or economic condition that influences the size of financial statement items. Cash budget is a detailed plan for cash inflows and outflows, stretch plan aims to achieve higher goals than the current one, and sustainable growth rate refers to the maximum rate at which a company can grow without having to raise additional equity or debt capital.

An Expected Physical or Economic Condition That Dictates the Size