When projecting financial statements, one would first __________ , and then proceed to __________.
A)project the balance sheet; forecast sales
B)forecast sales; project the income statement
C)forecast sales; project the balance sheet
D)forecast sales; project the statement of cash flows

Question

Quizplus · Accepted Answer

Forecasting sales is typically the first step in financial projection as it drives many other components of the financial statements. After forecasting sales, projecting the income statement is a logical next step because it directly reflects the impact of sales on revenue and expenses.

When Projecting Financial Statements, One Would First __________ , and Then