Question

explain the significance of assumptions in the preparation of the projected finacial statements.​

Answer 1

Answer:

Key assumptions are critical to all aspects of the financial forecasts – balance sheets, income statements, cash flow, business plans and so on. They include detailed forecasted sales volumes; cost of sales, general administration expenses, and others.

Answer 2

Solution:-

• Key assumptions are critical to all aspects of the financial forecasts – balance sheets, income statements, cash flow, business plans and so on.

• They include detailed forecasted sales volumes; cost of sales, general administration expenses, and others.