Pro forma financial information shows what the significant effects might have been had a consummated or proposed transaction or event occurred at an earlier date.

Question

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Pro forma financial information provides a projection of how a transaction or event would have affected the financial statements had it occurred earlier. This information is used by companies for planning and decision-making purposes, and is often required by investors or lenders when evaluating a company's financial health.

Pro Forma Financial Information Shows What the Significant Effects Might