Financial planning involves estimating projected cash flows, which is useful for all the following except:
A) setting internal goals.
B) providing information to shareholders and other external stakeholders concerning the firm's future expectations.
C) estimating the firm's future needs for internal and external financing.
D) auditors to determine if the company's annual report is true and correct.

Question

Quizplus · Accepted Answer

Financial planning involves estimating projected cash flows, which helps in setting internal goals, providing information to shareholders and external stakeholders concerning the firm's future expectations and estimating the firm's future needs for financing. However, auditors do not use financial planning to determine if the company's annual report is true and correct as it involves more in-depth analysis and examination of the financial statements.

Financial Planning Involves Estimating Projected Cash Flows, Which Is Useful