In evaluating projected financial statements, which key question must be asked?
A) Have all relevant outgoings been included?
B) How reliable are the assumptions that have been made?
C) What are the underlying assumptions?
D) All of the above

Question

Quizplus · Accepted Answer

In evaluating projected financial statements, it is important to ask all of these key questions. It is critical to ensure that all relevant outgoings have been included, to examine how reliable the assumptions made are, and to understand the underlying assumptions that have been made. Only then can meaningful conclusions be drawn from the projected financial statements.

In Evaluating Projected Financial Statements, Which Key Question Must Be