If ending inventory is understated, then net income is understated.

Which of the following statements BEST defines the relationship between sales forecasts and sales potentials?

A. The term sales forecast is synonymous with the term sales potential B. The sales forecast reflects what the company could sell in a territory if conditions were ideal; the sales potential estimate is an estimate of potential sales that are calculated under the assumption that market conditions are never ideal C. Sales potential estimates are always determined for a particular product; sales forecasts are always determined for particular territories D. Sales potential is the portion of the market potential a specific firm can reasonably expect to achieve; sales forecasts are estimates of the dollar or unit sales for a specified future period under a proposed marketing plan E. Sales forecasts are typically higher than sales potential estimates

Identify the steps in the selling process

What will be an ideal response?