Because key variables are often related rather than isolated we often change our estimates for selected variables simultaneously when examining pro forma statements.We call this type of activity:
A)ratio analysis.
B)scenario analysis.
C)sensitivity analysis.
D)form analysis.

Question

Quizplus · Accepted Answer

Scenario analysis involves changing multiple assumptions or variables simultaneously to assess the potential outcomes on financial forecasts or pro forma statements, reflecting different future conditions or scenarios.

Because Key Variables Are Often Related Rather Than Isolated We