Karen Borski is starting her own business. At present, she is working to calculate a month-by-month projection of expected expenses for the first three years of the company. In other words, Borski is developing a balance sheet.

Question

Quizplus · Accepted Answer

Borski is developing a cash flow forecast or projection, not a balance sheet. A balance sheet provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity, whereas a cash flow forecast projects future cash inflows and outflows over a period.

Karen Borski Is Starting Her Own Business