1. In which order should an accountant prepare the forecasted statements?

a. Balance sheet, income statement then cash flow statement

b. Cash flow statement, income statement then balance sheet

c. Income statement then balance sheet then cash flow statement

d. It does not matter the order

2. Which statement is false regarding financial forecasting?

a. You need not consider discretionary expenses

b. You can ignore depreciation expense since it does not require cash

c. You do not have to consider capital expenses

d. All of the answers are false

3. Which of the following is considered an essential element to forecasting?

a. Management plans

b. An understanding of the business model

c. Performance drivers

d. All are essential