Which of the following statements about forecasting receipts is true?
A)Sales forecasts present no problems.
B)Credit sales require estimation of the timing of cash receipts.
C)Only cash sales are included in forecasts.
D)Cash sales and credit sales have equal weighting.

Question

Quizplus · Accepted Answer

Credit sales require estimation of the timing of cash receipts because the company may not receive payment immediately. Thus, forecasting receipts for credit sales involves predicting when the customer will pay, which can be more challenging than forecasting receipts for cash sales.

Which of the Following Statements About Forecasting Receipts Is True