What are the two types of prospective financial statements? How do they differ from each other?
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total answers (1)
total answers (1)
Accounting
- a financial forecast is based upon anticipated results, whereas the financial projection is based upon the hypothetical assumptions
- a financial forecast is issued to the external users. however, a financial projection is only used by the internal users within the entity
- a financial projection is prepared only for a specific purpose such as "what if the company does not meet the current year sales target?", but not for the financial forecast
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