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 fo...

By forecasting financial statements that add up the ana ...

The chapter states that forecasts of financial statements should rely on the additivity within financial statements and

Question:

The chapter states that forecasts of should rely on the additivity within and the articulation across 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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...