45、Two techniques for forecasting cash flows are to use projection models and averages, or statistical techniques. Which of these two methods would be most appropriate for:

      medium-term forecasting?   long-term forecasting?

A.   Statistical techniques           Statistical techniques

B.    Statistical techniques           Projection models and averages

C.   Projection models and averages Statistical techniques

D.   Projection models and averages Projection models and averages

A. Answer A

B. Answer B

C. Answer C

D. Answer D

45、Correct answer is C

"Working Capital Management," Edgar A. Norton, Jr., Kenneth L. Parkinson, and Pamela P. Peterson

2008 Modular Level I, Vol. 4, p. 98

Study Session 11-46-c

classify the components of a cash forecast and prepare a cash forecast, given estimates of revenues, expenses, and other items

Projection models and averages are normally used to forecast medium-term cash flow needs while statistical techniques are normally used to forecast long-term needs.

thanks