BUS FIN 001 Quiz 0.0: Financial Planning Process

Financial Planning applies only to the area of business finance.

• TRUE

• FALSE

Financial planning is solely undertaken by the finance unit of an organization.

• TRUE

• FALSE

Financial planning is making a forecast on the financial operation of the business.

• TRUE

• FALSE

The vision and mission of the business are given importance in the formulation of the strategic financial plan.

• TRUE

• FALSE

The long-term financial plan need not be congruent to the vision of a business.

• TRUE

• FALSE

The first step in preparing a financial plan is to determine the expected cost and expenses.

• TRUE

• FALSE

The projected financial statements can be prepared without determining the level of operating expenses.

• TRUE

• FALSE

The preparation of financial plan gets more difficult once capital expenditures are included in the projected cost.

• TRUE

• FALSE

The sales performance of previous years can serve as the most logical basis in predicting the future sales of the business.

• TRUE

• FALSE

Sales projections based on previous sales are considered final in making the financial plan.

• TRUE

• FALSE