Which of the Following Represents a Way of Coping with Uncertainty

Multiple Choice

Which of the following represents a way of coping with uncertainty in a cash budget?

A) careful estimation of cash budgets outputs
B) developing a pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales
C) always using the prior year's data for estimates of the future
D) using scenario analysis, or "what if" approach, to analyze cash flows under a variety of circumstances