A ________ describes estimates by a small business owner of what the balance sheets and income statements will look like in the future.

Question

Quizplus · Accepted Answer

A pro forma is a financial document that predicts a business's future financial performance. It includes estimates of income, expenses, assets, and liabilities. Small business owners create pro forma statements to help them plan and budget for future business activities. The other options (B) balance sheet, (C) current asset, and (D) cash flow are all important financial terms related to accounting, but they do not specifically describe estimates of future financial performance.

A ________ Describes Estimates by a Small Business Owner of What