Which one of the following best describes pro forma financial statements?
A)financial statements expressed in a foreign currency
B)financial statements where the assets are expressed as a percentage of total assets and costs are expressed as a percentage of sales
C)financial statements showing projected values for future time periods
D)financial statements expressed in real dollars, given a stated base year
E)financial statements where all accounts are expressed as a percentage of last year's values

Question

Quizplus · Accepted Answer

Pro forma financial statements show projected values for future time periods, usually based on assumptions and estimates. They are used for planning and forecasting purposes and may include adjustments for one-time events or changes in a company's operations. The other choices do not accurately describe pro forma financial statements.

Which One of the Following Best Describes Pro Forma Financial