Question 1

The objective of financing the income statement under the projected balance sheet method is to determine how much income the company will earn and then retain for reinvestment in the business during the period that is forecasted.

Accepted Answer

The objective of financing the income statement under the projected balance sheet method is indeed to determine how much income the company will earn and retain for reinvestment in the business during the forecasted period.

Question 2

A good control system helps to ensure that plans are executed properly and to facilitate a timely modification of plans if the assumptions upon which the initial plans are based turn out to be inaccurate.

Accepted Answer

A good control system provides feedback on the performance of the organization and helps in making necessary adjustments to the plans. This ensures that the plans are executed properly and any deviations from the plan can be detected and corrected in a timely manner. Therefore, a good control system helps in achieving the goals of the organization efficiently and effectively.

Quiz 8: Financial Planning and Control

The objective of financing the income statement under the projected balance sheet method is to determine how much income the company will earn and then retain for reinvestment in the business during the period that is forecasted.

A good control system helps to ensure that plans are executed properly and to facilitate a timely modification of plans if the assumptions upon which the initial plans are based turn out to be inaccurate.