Relying on accounting to avoid forecast errors

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10.1 RELYING ON ACCOUNTING TO AVOID FORECAST ERRORS. The chapter states that forecasts of financial statements should rely on the additivity within financial statements and the articulation across financial statements to avoid internal inconsistencies in forecasts. Explain how the concepts of additivity and articulation apply to financial statement forecasts. Also explain how these concepts can help the analyst avoid potential forecast errors.

Reference no: EM131099498

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