Which of the following statements about using more sophisticated planning models is true?

Question

Quizplus · Accepted Answer

All of these statements are true. More sophisticated planning models take into account the relationship between different financial variables, such as sales and liabilities, and how they are impacted by managerial decisions. Current liabilities are likely to vary directly with sales, while long-term liabilities and equity accounts are affected by which investment projects are undertaken and how they are financed. Retained earnings are influenced by both sales changes and the firm's dividend payout policy.

Which of the Following Statements About Using More Sophisticated Planning