Tomas would like to know whether his new business will be profitable, how much financing he will need, and whether he will have adequate cash flows. Tomas can get this information from:
A) pro forma financial statements.
B) historical financial statements.
C) pro bono financial statements.
D) quid pro quo financial statements.

Question

Quizplus · Accepted Answer

Pro forma financial statements are projected statements that estimate future financial performance based on assumptions and available data. They can provide information on profitability, financing needs, and cash flows. Historical financial statements, on the other hand, provide information on past performance and may not be relevant for making future business decisions. Pro bono financial statements refer to services provided for free, and quid pro quo financial statements involve a reciprocal exchange of goods or services instead of monetary payment.

Tomas Would Like to Know Whether His New Business Will