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CHAPTER 3
CHAPTER 3
Financial Statement Analysis, Planning, and Growth
Multiple Choice Questions:
I. DEFINITIONS
LONG-TERM PLANNING
c 1. One key reason a long-term financial plan is developed is because:
a. the plan determines your financial policy.
b. the plan determines your investment policy.
c. there are direct connections between achievable corporate growth and the financial policy.
d. there is unlimited growth possible in a well-developed financial plan.
e. None of the above.
PRO FORMA STATEMENTS
b 2. Projected future financial statements are called:
a. plug statements.
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