What is the most important ingredient in developing a firm's financial plan?
A) A forecast of sales revenues
B) Determining the amount of dividends to pay shareholders
C) Projecting the rate of interest on proposed new debt
D) Deciding upon which method of depreciation a firm should utilize

Question

Quizplus · Accepted Answer

A forecast of sales revenues is the most important ingredient in developing a firm's financial plan as it serves as the foundation for other financial decisions and projections. Other factors such as dividend payments, interest rates, and depreciation methods are based on the expected sales revenues.

What Is the Most Important Ingredient in Developing a Firm's