Which of the following statements is false regarding a company's budgeted financial statements?
A) They are used for internal planning purposes.
B) They are often called pro forma financial statements.
C) Lending institutions should not use them as a basis for granting a loan.
D) An error in the preparation of one budget often affects one or more other budgets.

Question

Quizplus · Accepted Answer

Lending institutions may use a company's budgeted financial statements as part of their loan evaluation process, but they would also consider other factors such as historical financial performance, creditworthiness, and collateral.

Which of the Following Statements Is False Regarding a Company's