To prepare a pro-forma income statement, information is pulled from
A)the general ledger.
B)the trial balance.
C)components of the master budget.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

A pro-forma income statement is a projected statement that shows the expected revenues, expenses, and profits for a future period. To prepare this statement, information needs to be gathered from the different components of the master budget, such as the sales budget, production budget, and operating expense budget. Therefore, the correct answer is C - components of the master budget. The information from the general ledger and trial balance may be useful in preparing the budget but is not directly used for a pro-forma income statement.

To Prepare a Pro-Forma Income Statement, Information Is Pulled from