Projected statements must be analyzed to determine if they meet the targets by _____.
A) preparing financial ratios
B) preparing the statement of cash flows
C) determining economies of scale
D) calculating lumpy assets
E) preparing budgetary notes

Question

Quizplus · Accepted Answer

Projected statements must be analyzed by preparing financial ratios to determine if they meet the targets. Financial ratios are tools used to analyze and compare financial statements, giving insight into the performance and financial health of a company. By comparing actual results to projected statements using financial ratios, analysts can determine if the company is meeting its targets and identify areas for improvement.

Projected Statements Must Be Analyzed to Determine If They Meet