Which of the following are (is) generally considered problems associated with cash flow estimation?

Question

Quizplus · Accepted Answer

Both uncertainty about the future cash flows and the introduction of bias into the estimation of cash flows are generally considered problems associated with cash flow estimation. Uncertainty about future cash flows can be caused by factors such as changes in the economy, consumer preferences, or competitive landscape. Introduction of bias can occur due to factors such as optimistic forecasts and faulty assumption about growth and market share. Uncertainty about the magnitude of fixed cost financing charges and other charges are generally considered problems associated with cost of capital estimation, not cash flow estimation specifically.

Which of the Following Are (Is) Generally Considered Problems Associated