D076 Module 9 Question and answers
correctly solved 2025/2026
What role does financial forecasting play in the future success and growth of a firm? - correct answer
✔Financial forecasting supplements historical data with proposed investments or changes to allow for
more accurate foresight.
What is the goal of financial forecasting? - correct answer ✔To understand the implications of today's
decisions on tomorrow's performance
Which question is answered by financial forecasting? - correct answer ✔How much financing will the
firm need in the future?
How does financial forecasting help with financial decision-making? - correct answer ✔It helps decision
makers understand the impacts of today's actions on the future performance of the firm.
What is one of the fundamental purposes of financial forecasting? - correct answer ✔To estimate how
changes in cost structures or sales will impact the future cash flows and financing needs of the firm
What are spontaneous accounts? - correct answer ✔Accounts that vary naturally with sales
Which type of account changes with sales growth? - correct answer ✔Spontaneous accounts
If a company expects sales to grow by 10% next year, which account might also increase by 10%? -
correct answer ✔Cost of goods sold
When can the discretionary financing needed (DFN) be determined? - correct answer ✔After pro-forma
financial statements are forecasted using the percent of sales method
correctly solved 2025/2026
What role does financial forecasting play in the future success and growth of a firm? - correct answer
✔Financial forecasting supplements historical data with proposed investments or changes to allow for
more accurate foresight.
What is the goal of financial forecasting? - correct answer ✔To understand the implications of today's
decisions on tomorrow's performance
Which question is answered by financial forecasting? - correct answer ✔How much financing will the
firm need in the future?
How does financial forecasting help with financial decision-making? - correct answer ✔It helps decision
makers understand the impacts of today's actions on the future performance of the firm.
What is one of the fundamental purposes of financial forecasting? - correct answer ✔To estimate how
changes in cost structures or sales will impact the future cash flows and financing needs of the firm
What are spontaneous accounts? - correct answer ✔Accounts that vary naturally with sales
Which type of account changes with sales growth? - correct answer ✔Spontaneous accounts
If a company expects sales to grow by 10% next year, which account might also increase by 10%? -
correct answer ✔Cost of goods sold
When can the discretionary financing needed (DFN) be determined? - correct answer ✔After pro-forma
financial statements are forecasted using the percent of sales method
