Elvira is considering purchasing a new truck for her distribution company. To better evaluate such a financial risk, she makes projections about what her company's financial condition will be like in the future if a new truck is purchased. This is referred to as a/an ______.

Question

Quizplus · Accepted Answer

Pro forma financial statements are forward-looking financial projections that help businesses estimate their future financial position, including the impact of potential investments such as purchasing a new truck. These statements are used for planning and decision-making purposes.

Elvira Is Considering Purchasing a New Truck for Her Distribution