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Plug

• A variable that handles financial slack in the financial plan.

 
 Embedded terms in definition
 Financial plan
Variable
 
 Referenced Terms
 Judgmental approach: A method for developing the pro forma balance sheet in which the values of certain balance sheet accounts are estimated while others are calculated, using the firm's external financing as a balancing, or Plug, figure.

 
 Related Terms
 External funds required plug figure

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