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<p style="text-align:justify;"><strong><span>(a) Preparation of Projected Statements,</span></strong></p> <p style="text-align:justify;"><strong><span>(b) Preparation of Actual Statements,</span></strong></p> <p style="text-align:justify;"><strong><span>(c) Comparison of Actual with Projected,</span></strong></p> <p style="text-align:justify;"><strong><span>(d) Ordering the employees that projected figures m come true.</span></strong></p>
(c) Comparison of Actual with Projected,
Answer correct answer C
C. Preparation of Actual statements....
Comparison of budgeted and actual is the correct answer.
I think option C is right answer.
C IS ANSWER
Answer C is correct. Financial Planning is an ongoing process which has to be done at least once a year in an organization. Comparing the actual results with projections and taking corrective actions on a timely basis (based on the reason for variances) would always help to prepare a realistic financial plan for the company in future.
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Consists of the Following Six Steps
ESTABLISHING AND DEFINING THE CLIENT-PLANNER RELATIONSHIP.
The financial planner should clearly explain or document the
services to be provided to you and define both his and your
responsibilities. The planner should explain fully how he will
be paid and by whom. You and the planner should agree on
how long the professional relationship should last and on
how decisions will be made.
GATHERING CLIENT DATA, INCLUDING GOALS.
The financial planner should ask for information about your
financial situation. You and the planner should mutually
define your personal and financial goals, understand your
time frame for results and discuss, if relevant, how you feel
about risk. The financial planner should gather all the
necessary documents before giving you the advice you need.
ANALYZING AND EVALUATING YOUR FINANCIAL STATUS.
The financial planner should analyze your information to
assess your current situation and determine what you must
do to meet your goals. Depending on what services you have
asked for, this could include analyzing your assets, liabilities
and cash flow, current insurance coverage, investments or
tax strategies.
DEVELOPING AND PRESENTING FINANCIAL PLANNING RECOMMENDATIONS AND/OR ALTERNATIVES.
The financial planner should offer financial planning
recommendations that address your goals, based on the
information you provide. The planner should go over the
recommendations with you to help you understand them so
that you can make informed decisions. The planner should
also listen to your concerns and revise the recommendations
as appropriate.
IMPLEMENTING THE FINANCIAL PLANNING RECOMMENDATIONS.
You and the planner should agree on how the recommenda-
tions will be carried out. The planner may carry out the
recommendations or serve as your “coach,” coordinating the
whole process with you and other professionals such as
attorneys or stockbrokers.
MONITORING THE FINANCIAL PLANNING RECOMMENDATIONS.
You and the planner should agree on who will monitor your
progress towards your goals. If the planner is in charge of
the process, she should report to you periodically to review
your situation and adjust the recommendations, if needed,
as your life changes
As the result from Financial Planning will end with "Actual recommendation of a comprehensive financial plan for our client". in my humble opinion: Answer is “ C “
Comparison of Actual and projected financials
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