Q.12

11 Tulevasted. poutny assets and operating d) Inventory and accounts payable should be forecasted based on total assets, as these tend to scale together 12. Which of the following are true concerning forecasting interest income? I. It is a nonoperating measure. II. Its typical forecast driver is revenue. III. It is typically the same from year to year for firms that generate high cash flow. IV. The typical forecast ratio is interest income in the current period divided by excess cash in the previous period. a) I and II only. b) I and IV only. c) II and III only. d) III and IV only. 13. When using PP&E as the forecast driver for depreciation, which of the following is m accurate? a) From both an ideal and a practical standpoint, the driver should be net PP&E. b) From both an ideal and a practical standpoint, the driver should be gross PP&E. c) Ideally, the driver should be net PP&E, but practically the driver should be gross PP&E. d) Ideally, the driver should be gross PP&E, but practically the driver should be net PP&E