Which of the following is true of projecting financial statements?

Question

Quizplus · Accepted Answer

Projecting financial statements involves translating planned physical activities into budgeted dollars, such as predicting sales based on marketing activities, estimating production costs and operating expenses, and forecasting capital expenditures.

Answer: C
 Projecting financial statements can be constructed for both ongoing businesses and new businesses, but it may be easier for ongoing businesses since they have historical financial data to use as a reference point.

Therefore, the correct answers are A and C.

Which of the Following Is True of Projecting Financial Statements