There are two primary tools used to forecast and set in action a company plan.Which of the tools below is one of these?
A)Statements of retained earnings
B)Profit budgets
C)Income statements
D)Pro forma statements

Question

Quizplus · Accepted Answer

Pro forma statements are one of the primary tools used to forecast and set in action a company plan. These statements project the financial performance of a business in the future based on assumptions and past data. They can help businesses identify potential risks, opportunities, and areas where they need to focus their efforts. Profit budgets are also important in setting company plans, but they are not one of the primary tools mentioned in the question. Statements of retained earnings and income statements are financial statements used to report on past performance, but they are not primarily used to forecast and set in action a company plan.

There Are Two Primary Tools Used to Forecast and Set