Which of the following accurately describes financing feedbacks?
A) Funds that a firm must raise externally through new borrowing or by selling new stock.
B) A method of forecasting financial requirements based on forecasted financial statements.
C) A forecast of a firm's unit and dollar sales generally based on recent sales trends plus forecasts of the economic prospects for the nation, region, industry, and so forth.
D) The effects on the income statement and balance sheet of actions taken to finance forecasted increases in assets.
E) The projection of sales, income, and assets, as well as the determination of the resources needed to achieve these projections.

Question

Quizplus · Accepted Answer

Financing feedbacks refer to the impacts of financing decisions on a firm's income statement and balance sheet. This includes the effects of raising external funds (such as through borrowing or issuing new stock) to finance forecasted increases in assets. Option A describes external financing, option B describes pro forma analysis, option C describes sales forecasting, and option E describes financial planning.

Which of the Following Accurately Describes Financing Feedbacks