A benefit of using projected balance sheets and income statements is that
A) an organization can compute projected financial ratios under various scenarios.
B) money can be put aside to pay future income taxes.
C) insurance needs can be computed.
D) it is useful in analyzing past performance.
E) all of the above

Question

Quizplus · Accepted Answer

Projected balance sheets and income statements allow an organization to estimate future financial performance and compute projected financial ratios under different scenarios. This can be helpful in making decisions and planning for the future. While the other options may also be relevant, they are not specifically benefits of using projected financial statements.

A Benefit of Using Projected Balance Sheets and Income Statements