Ingrid is the owner of an entrepreneurial firm.She makes an estimate of the assets and liabilities of the firm.She then uses these estimates to plan the future activities of the firm.In this scenario, Ingrid creates a

Question

Quizplus · Accepted Answer

Ingrid's process of estimating the firm's assets and liabilities and using them for future planning indicates the creation of a pro forma balance sheet. This is a projected or estimated balance sheet that helps in forecasting the firm's financial position based on assumptions and estimates. Hence, option D is the best choice. The other options such as time value of money graph, deviation analysis, and cash flow statement are also important financial tools but not directly relevant in this context.

Ingrid Is the Owner of an Entrepreneurial Firm