Which of the following would be considered part of financing feedbacks in the financial forecasting process?
A)Funds that a firm must raise externally through new borrowing or by selling new stock to meet its financial goals.
B)The change in current assets that occur when a firm implements a sales forecast.
C)The effects forecasts of the economic prospects for the nation, region, and industry have on the taxes the firm must pay on the income it earned in the most recent accounting period.
D)The effects on the income statement and balance sheet of actions the firm takes to finance forecasted increases in assets.
E)The effect that forecasted sales has on the owners of the firm.

Question

Quizplus · Accepted Answer

Financing feedbacks refer to the effects of financing decisions on the balance sheet and income statement. Option D describes the effects of actions taken by the firm to finance forecasted increases in assets, which is a part of financing feedbacks. Options A, B, C, and E do not directly relate to financing feedbacks.

Which of the Following Would Be Considered Part of Financing