Which is NOT a step in performing a projected financial analysis?
A) Prepare the projected income statement before preparing the balance sheet
B) Forecast sales as accurately as possible
C) Use the percentage-of-sales method to project CGS
D) Subtract from the net income any dividends to be paid for that year and bring this retained earnings amount over to the balance sheet
E) Use the revenue account as the plug figure

Question

Quizplus · Accepted Answer

Using the revenue account as the plug figure is not a standard step in projected financial analysis. The plug figure is typically used to balance the balance sheet, often involving accounts like cash or debt, not revenue.

Which Is NOT a Step in Performing a Projected Financial