Which of the following statements is correct?
A) The sales forecast is the driver for corporate financial planning.
B) The addition to retained earnings is the driver for corporate financial planning.
C) The debt ratio is the driver for corporate financial planning.
D) None of the above

Question

Quizplus · Accepted Answer

Sales forecast is a major driver for corporate financial planning, as it affects the revenue and profits of an organization, which in turn impact financial decisions such as investment, financing, and dividend policies. Retained earnings and debt ratio are important financial metrics, but they are not primary drivers for corporate financial planning.

Which of the Following Statements Is Correct