Which of the following is a forecasting method used to project financial statements?
A)percent-of-sales method
B)percent-of-expenses method
C)return on equity method
D)additional funds needed method

Question

Quizplus · Accepted Answer

The percent-of-sales method is commonly used to project financial statements by estimating future revenues, and then applying various ratios to project future expenses and other line items, resulting in pro forma statements. The other methods listed (percent-of-expenses, return on equity, and additional funds needed) are not directly focused on projecting financial statements.

Which of the Following Is a Forecasting Method Used to Project