Question

Which statement regarding forecasting is false? If you are only forecasting cash then the cash flow statements are the only one you need to prepare You should review historical financial statements The base year is the year immediately before the first year you are forecasting Typically you use the base year as your starting point forecasting

Answer 1

The False Statement is :

If you are only forecasting cash then the cash flow statements are the only one you need to prepare

Step-by-step explanation:

Cash forecasting does not stand in isolation. Other statements such as the Trade Receivables statements showing cash receipts amounts and timings or Trade Payable Statements showing cash payments amounts and timing are critical and also need to be prepared.