Preparing comprehensive financial statement forecasts involves six steps,the first one being to forecast depreciation expense and tax expense each period.

Question

Quizplus · Accepted Answer

The six steps to preparing comprehensive financial statement forecasts are:
1. Forecast sales revenue
2. Forecast cost of goods sold
3. Forecast operating expenses
4. Forecast interest expense
5. Forecast other income and expenses
6. Forecast income taxes and dividends. Depreciation expense and tax expense are included in step 3 and step 6 respectively.

Preparing Comprehensive Financial Statement Forecasts Involves Six Steps,the First One