Mba prep cfin - Study guides, Class notes & Summaries

Analysts within a company are more likely to fall into the "false accuracy trap" when they develop pro formas than would external analysts because insiders have access to more detailed information correct answers True When making financial projections, if a particular expense item cannot be predicted with any degree of confidence, it should be forecast at the highest level it would ever likely to reach, so as to make the pro formas conservative correct answers False The greater detail in...

MBA Prep CFIN Fundamentals of Economics questions with correct

Analysts within a company are more likely to fall into the "false accuracy trap" when they develop pro formas than would external analysts because insiders have access to more detailed information - ANSWTrue When making financial projections, if a particular expense item cannot be predicted with any degree of confidence, it should be forecast at the highest level it would ever likely to reach, so as to make the pro formas conservative - ANSWFalse The greater detail in a pro forma, th...

Analysts within a company are more likely to fall into the "false accuracy trap" when they develop pro formas than would external analysts because insiders have access to more detailed information - Correct Answer True When making financial projections, if a particular expense item cannot be predicted with any degree of confidence, it should be forecast at the highest level it would ever likely to reach, so as to make the pro formas conservative - Correct Answer False The greater detail ...