Financial Forecasting flashcards are a helpful study tool that can assist students in learning and remembering key concepts related to predicting future financial outcomes. These flashcards typically contain important terms, formulas, and examples that are essential for understanding financial forecasting.
Financial Forecasting is the process of making predictions about a company’s future financial performance based on historical data and analysis. It involves estimating future revenues, expenses, and cash flows to help businesses make informed decisions and set realistic goals. By using various techniques such as trend analysis and regression modeling, companies can create accurate forecasts to guide their financial planning and strategies.
{"stat":1,"data":{"id":128,"deckName":"Financial Forecasting","front":"term","catName":"Entrepreneurship","langcards":0,"lang":"none","cards":[{"id":13914,"front":"Revenue forecast","back":"Predicting how much money a company expects to make in the future."},{"id":13915,"front":"Expense forecast","back":"An estimate of how much money will be spent in the future."},{"id":13916,"front":"Cash flow forecast","back":"Predicting how much money will come in and go out of a business in the future."},{"id":13917,"front":"Budget variance analysis","back":"Comparing actual spending to planned spending."},{"id":13918,"front":"Pro forma financial statements","back":"Projected financial statements that show how a company's finances might look in the future."},{"id":13919,"front":"Sensitivity analysis","back":"Examining how changes in certain variables can affect the outcome of a decision or model."},{"id":13920,"front":"Scenario planning","back":"Planning for different possible futures."},{"id":13921,"front":"Break-even analysis","back":"Determining when a business makes enough money to cover costs."},{"id":13922,"front":"Forecast error","back":"The difference between predicted and actual results."},{"id":13923,"front":"Time series analysis","back":"Studying patterns in data over time."},{"id":13924,"front":"Trend analysis","back":"Examining data over time to identify patterns or shifts."},{"id":13925,"front":"Regression analysis","back":"Analyzing the relationship between variables to predict outcomes."},{"id":13926,"front":"Forecast horizon","back":"The time period for which a forecast is made."},{"id":13927,"front":"Rolling forecast","back":"An ongoing financial prediction that is updated regularly."},{"id":13928,"front":"Forecast accuracy","back":"The measure of how close a prediction is to the actual result."},{"id":13929,"front":"Capital budgeting","back":"Decision-making process used by companies to determine which long-term investments or projects to pursue."},{"id":13930,"front":"Discounted cash flow analysis","back":"Valuing a company based on future cash it will make."},{"id":13931,"front":"Net present value","back":"The value of future cash flows in today's money."},{"id":13932,"front":"Internal rate of return","back":"The internal rate of return is the rate at which an investment breaks even, or the rate of return that makes the net present value of all cash flows equal to zero."},{"id":13933,"front":"Payback period","back":"Time it takes to recoup an investment."}]}}
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quick facts
Financial forecasting is the process of predicting future financial outcomes based on historical data and trends.
Companies use financial forecasting to make informed decisions about budgeting, investing, and managing their finances.
One common method of financial forecasting is using mathematical models and algorithms to analyze data and make predictions.
Financial forecasting can help businesses anticipate potential risks and opportunities, allowing them to make strategic decisions to achieve their financial goals.
Effective financial forecasting requires accurate data, thorough analysis, and regular monitoring and adjustments as needed.
card list
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Revenue Forecast
Predicting How Much Money A Company Expects To Make In The Future.
Expense Forecast
An Estimate Of How Much Money Will Be Spent In The Future.
Cash Flow Forecast
Predicting How Much Money Will Come In And Go Out Of A Business In The Future.
Budget Variance Analysis
Comparing Actual Spending To Planned Spending.
Pro Forma Financial Statements
Projected Financial Statements That Show How A Company's Finances Might Look In The Future.
Sensitivity Analysis
Examining How Changes In Certain Variables Can Affect The Outcome Of A Decision Or Model.
Scenario Planning
Planning For Different Possible Futures.
Break-even Analysis
Determining When A Business Makes Enough Money To Cover Costs.
Forecast Error
The Difference Between Predicted And Actual Results.
Time Series Analysis
Studying Patterns In Data Over Time.
Trend Analysis
Examining Data Over Time To Identify Patterns Or Shifts.
Regression Analysis
Analyzing The Relationship Between Variables To Predict Outcomes.
Forecast Horizon
The Time Period For Which A Forecast Is Made.
Rolling Forecast
An Ongoing Financial Prediction That Is Updated Regularly.
Forecast Accuracy
The Measure Of How Close A Prediction Is To The Actual Result.
Capital Budgeting
Decision-making Process Used By Companies To Determine Which Long-term Investments Or Projects To Pursue.
Discounted Cash Flow Analysis
Valuing A Company Based On Future Cash It Will Make.
Net Present Value
The Value Of Future Cash Flows In Today's Money.
Internal Rate Of Return
The Internal Rate Of Return Is The Rate At Which An Investment Breaks Even, Or The Rate Of Return That Makes The Net Present Value Of All Cash Flows Equal To Zero.
