Which of the following is the most important ingredient of the financial planning process of a firm?
A) Expense forecast
B) External financing forecast
C) Sales forecast
D) Internal fund generation forecast
E) Capital requirements forecast

Question

Quizplus · Accepted Answer

Sales forecast is considered the most important ingredient of financial planning as all other forecasts and projections rely on it. It helps firms in determining their revenues, and subsequently, their expenses, internal fund generation, external financing needs, and capital requirements.

Which of the Following Is the Most Important Ingredient of the Financial