Question

Arrange the following steps involved in the process of financial planning in the correct sequence.

• A. Preparation of a sales forecast, Estimation of expected profit, Preparation of financial statements
• B. Preparation of a sales forecast, Preparation of financial statements, Estimation of expected profit
• C. Preparation of financial statements, Estimation of expected profit, Preparation of a sales forecast
• D. Estimation of expected profit, Preparation of a sales forecast, Preparation of financial statements

Answer 1

The correct option is B

Preparation of a sales forecast, Preparation of financial statements, Estimation of expected profit

Answer (b) Preparation of a sales forecast, Preparation of financial statements, Estimation of expected profit

Explanation: Financial planning is undertaking the responsibility of deciding how a business will stand to accomplish its primary objectives and goals. The Financial Plan portrays all of the activities, assets, machinery, and materials that are required to accomplish these targets, within a stipulated time frame. Preparation of a sales forecast, Preparation of financial statements, Estimation of expected profit is the correct sequence of the financial planning process.