A. True or False: Write T if the statement is correct. If it is not, write F, and state your reason briefly. 1. Financial planning applies only to the area of business finance. 2. Financial planning is solely undertaken by the finance unit of an organization. 3. The projected financial statements can be prepared without determining the level of operating expenses. 4. The preparation of financial plan gets more difficult once capital expenditures are included in the projected cost 5. Sales predictions based on previous sales are considered final in making the financial plan. 6. The long-term financial plan need not be congruent to the vision of a business. 7. The vision of the business defines its short-term financial direction. 8. Financial goals are broader than financial objectives 9. The production schedule is prepared ahead of the sales forecast 10. The financial plan is easily prepared and becomes logical if the expected cost and expenses are determined first. 11. Financial planning is making a forecast on the financial operation of the business. 12. The first step in preparing a financial plan is to determine the expected cost and expenses. 13. Long-term and short-term financial securities are ordinarily traded in the capital market. 14. The sales performance of previous years can serve as the most logical basis in predicting the future sales of the business. level 15. The additional funds needed must be determined once sales are expected to remain at a steady
A. True or False: Write T if the statement is correct. If it is not, write F, and state your reason briefly. 1. Financial planning applies only to the area of business finance. 2. Financial planning is solely undertaken by the finance unit of an organization. 3. The projected financial statements can be prepared without determining the level of operating expenses. 4. The preparation of financial plan gets more difficult once capital expenditures are included in the projected cost 5. Sales predictions based on previous sales are considered final in making the financial plan. 6. The long-term financial plan need not be congruent to the vision of a business. 7. The vision of the business defines its short-term financial direction. 8. Financial goals are broader than financial objectives 9. The production schedule is prepared ahead of the sales forecast 10. The financial plan is easily prepared and becomes logical if the expected cost and expenses are determined first. 11. Financial planning is making a forecast on the financial operation of the business. 12. The first step in preparing a financial plan is to determine the expected cost and expenses. 13. Long-term and short-term financial securities are ordinarily traded in the capital market. 14. The sales performance of previous years can serve as the most logical basis in predicting the future sales of the business. level 15. The additional funds needed must be determined once sales are expected to remain at a steady
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:A. True or False: Write T if the statement is correct. If it is not, write F, and state your reason briefly.
1. Financial planning applies only to the area of business finance.
2. Financial planning is solely undertaken by the finance unit of an organization.
3. The projected financial statements can be prepared without determining the level of operating
expenses.
4. The preparation of financial plan gets more difficult once capital expenditures are included in the
projected cost
5. Sales predictions based on previous sales are considered final in making the financial plan.
6. The long-term financial plan need not be congruent to the vision of a business.
7. The vision of the business defines its short-term financial direction.
8. Financial goals are broader than financial objectives
9. The production schedule is prepared ahead of the sales forecast
10. The financial plan is easily prepared and becomes logical if the expected cost and expenses are
determined first.
11. Financial planning is making a forecast on the financial operation of the business.
12. The first step in preparing a financial plan is to determine the expected cost and expenses.
13. Long-term and short-term financial securities are ordinarily traded in the capital market.
14. The sales performance of previous years can serve as the most logical basis in predicting the future
sales of the business.
level
15. The additional funds needed must be determined once sales are expected to remain at a steady
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education