CFA Practice Question

There are 120 practice questions for this study session.

CFA Practice Question

Which of the following is the most appropriate technique for forecasting cash flow for the short term?

A. Statistical models
B. Simple projections
C. Projection models and averages
Correct Answer: B

Simple projections are used to forecast short-term needs. Projection models and averages are normally used to forecast medium-term cash flow needs. Statistical models are normally used to forecast long-term needs, not short-term cash flow needs.

User Contributed Comments 2

User Comment
khalifa92 not mentioned here or in the text book
khalifa92 nah its mentioned
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