C214 Chapt 10 Review:: Financial
Forecast Question and answers 100%
correct 2026
Accounts that vary directly with sales are called: - correct answer ✔Spontaneous accounts
Generally speaking, as a firm grows its sales what is required? - correct answer ✔Increased financing is
needed to fund the growth
If DFN is negative, what does it indicate? - correct answer ✔We have extra funds in the forecasted
period
Which of the following is usually NOT a spontaneous account? - correct answer ✔Long-term debt
Firms should grow their sales as fast as possible::TorF - correct answer ✔FALSE
What is typically covered by discretionary accounts? - correct answer ✔DFN
When using the percent of sales method, accounts like accounts receivable always have to vary with
sales. T or F:: - correct answer ✔FALSE
Forecasting is vulnerable to the inputs that we put into the model. What is the acronym for this
concern? - correct answer ✔GIGO
Which of the following is NOT one of the four factors of growth according to the DuPont and SGR? -
correct answer ✔Dividend policy
Asset utilization
Forecast Question and answers 100%
correct 2026
Accounts that vary directly with sales are called: - correct answer ✔Spontaneous accounts
Generally speaking, as a firm grows its sales what is required? - correct answer ✔Increased financing is
needed to fund the growth
If DFN is negative, what does it indicate? - correct answer ✔We have extra funds in the forecasted
period
Which of the following is usually NOT a spontaneous account? - correct answer ✔Long-term debt
Firms should grow their sales as fast as possible::TorF - correct answer ✔FALSE
What is typically covered by discretionary accounts? - correct answer ✔DFN
When using the percent of sales method, accounts like accounts receivable always have to vary with
sales. T or F:: - correct answer ✔FALSE
Forecasting is vulnerable to the inputs that we put into the model. What is the acronym for this
concern? - correct answer ✔GIGO
Which of the following is NOT one of the four factors of growth according to the DuPont and SGR? -
correct answer ✔Dividend policy
Asset utilization
