Question

Financial planning deals with ________.

• A. Preparation of Financial Statements
• B. Planning for a Capital Issue
• C. Preparing Budgets
• D. All of the Above

Answer 1

Answer: (C)

Preparing Budgets

Financial planning is the task of determining how a business will afford to achieve its strategic goals & objectives. Usually, a company creates a Financial Plan immediately after the vision & objectives have been set. Therefore, it deals with assessing the business environment, confirming the vision & mission objecives have been set, identifying resources to achieve these objectives, calculate the total cost of each type of resource, summarize the costs to create a budget.