To predict future financial performance

To create a budget

To manage cash flow

To assess profitability

Trend analysis

Scenario analysis

Monte Carlo simulation

Linear regression

A budget is a plan for how money will be spent, while a financial forecast is a prediction of how much money will be earned and spent.

A budget is a short-term plan, while a financial forecast is a long-term plan.

A budget is created by management, while a financial forecast is created by financial analysts.

A budget is based on historical data, while a financial forecast is based on assumptions about future events.

Short-term forecasts, long-term forecasts, and rolling forecasts

Operating forecasts, capital forecasts, and financial forecasts

Income forecasts, expense forecasts, and cash flow forecasts

Profitability forecasts, liquidity forecasts, and solvency forecasts

Historical data

Assumptions about future events

Management's expectations

The company's financial goals

To identify the most important factors that affect the forecast

To assess the impact of different scenarios on the forecast

To determine the probability of different outcomes

To calculate the expected value of the forecast

A deterministic forecast is based on historical data, while a stochastic forecast is based on assumptions about future events.

A deterministic forecast is more accurate than a stochastic forecast.

A deterministic forecast is easier to create than a stochastic forecast.

A deterministic forecast is more useful for decision-making than a stochastic forecast.

Liquidity ratios, profitability ratios, and solvency ratios

Operating ratios, investing ratios, and financing ratios

Return on investment ratios, return on equity ratios, and return on assets ratios

Gross profit margin, net profit margin, and operating profit margin

Current ratio

Quick ratio

Cash ratio

Net working capital

Net profit margin

Gross profit margin

Operating profit margin

Return on equity

Debt-to-equity ratio

Times interest earned ratio

Debt-to-asset ratio

Interest coverage ratio

A financial statement is a historical record of a company's financial performance, while a financial forecast is a prediction of future financial performance.

A financial statement is created by management, while a financial forecast is created by financial analysts.

A financial statement is based on actual data, while a financial forecast is based on assumptions about future events.

A financial statement is more useful for decision-making than a financial forecast.

Income statement, balance sheet, and statement of cash flows

Income statement, statement of retained earnings, and statement of changes in equity

Balance sheet, statement of cash flows, and statement of changes in financial position

Income statement, balance sheet, and statement of changes in financial position

To show a company's revenues, expenses, and profits over a period of time

To show a company's assets, liabilities, and equity at a point in time

To show a company's cash inflows and outflows over a period of time

To show a company's changes in financial position over a period of time

To show a company's assets, liabilities, and equity at a point in time

To show a company's revenues, expenses, and profits over a period of time

To show a company's cash inflows and outflows over a period of time

To show a company's changes in financial position over a period of time

To show a company's cash inflows and outflows over a period of time

To show a company's assets, liabilities, and equity at a point in time

To show a company's revenues, expenses, and profits over a period of time

To show a company's changes in financial position over a period of time