The key output(s) of the short-run financial planning process are a(n)
A) cash budget, pro forma income statement, and pro forma balance sheet.
B) cash budget, sales forecast, and income statement.
C) sales forecast and cash budget.
D) income statement, balance sheet, and source and use statement.

Question

Quizplus · Accepted Answer

The key outputs of the short-run financial planning process are a cash budget, pro forma income statement, and pro forma balance sheet. These three financial statements provide a comprehensive view of the organization's cash position, projected income, and financial position. A sales forecast and income statement may be used in the process, but are not sufficient on their own. A balance sheet and source and use statement are important financial statements, but they are not the key outputs of the short-run financial planning process.

The Key Output(s) of the Short-Run Financial Planning Process Are