A pro forma ________ forecasts the timing and amount of cash inflows and cash outflows.
A)income statement
B)balance sheet
C)cash budget
D)annual report

Question

Quizplus · Accepted Answer

A cash budget is a financial statement that estimates the expected cash inflows and outflows for a specific period of time. It usually covers a shorter time frame than an annual report and focuses specifically on cash transactions. The pro forma aspect means it is a projected budget based on assumptions and estimates. Therefore, a pro forma cash budget would provide a forecast of future cash inflows and outflows.

A Pro Forma ________ Forecasts the Timing and Amount of Cash