Errors in the sales forecast can be offset by similar errors in costs and income forecasts. Thus, as long as the errors are not large, sales forecast accuracy is not critical to the firm.?
Answer the following statement true (T) or false (F)
False
A sales forecast is the most important ingredient of financial forecasting. If the sales forecast is inaccurate, the consequences can be serious. See 16-1: Projected (Pro Forma) Financial Statements
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Source data for direct labor comes from the
a. materials inventory in the general ledger, b. work in process inventory in the general ledger. c. Adjusted Trial Balance columns of the work sheet. d. Income Statement columns of the work sheet.
When using the indirect method for preparing the statement of cash flows, all of the following will appear in the operating activities section except:
a. Increase in deferred tax. b. Depreciation expense on leased assets. c. Interest expense. d. An increase in long-term liabilities.
In a small business, because it is often cost-prohibitive to hire extra employees, the lack of certain separations of duties can best be overcome by
A) bonding the employees. B) getting the owner actively involved. C) hiring only honest employees. D) holding one person responsible for a given set of transactions.
Prospecting is often called the art of creating, extracting, and delivering customer value and communicating the value created in a timely manner
Indicate whether the statement is true or false