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 you avoid potential forecast errors.
The concepts of additivity and articulation can apply to financial statements and forecasts when:
These concepts helps the avoiding the potential forecast errors by: