AFP
CTP · Question #436
(Topic 5) What step can a cash manager take to validate a cash flow forecast?
The correct answer is B. Test the model using data that was not used to develop it. See the full explanation below for the reasoning.
Question
- (Topic 5)
What step can a cash manager take to validate a cash flow forecast?
Options
- ACalculate variances between actual and predicted depreciation.
- BTest the model using data that was not used to develop it.
- CCompare estimated sales to actual income.
- DCompare estimated tax payments to actual payments.
How the community answered
(28 responses)- A7% (2)
- B75% (21)
- C14% (4)
- D4% (1)
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