Pro forma financial statements are used to ___________.
A) find the contribution margin
B) show the results of some assumed event
C) predict the sensitivity of different output variables
D) show the results of an actual event

Question

Quizplus · Accepted Answer

Pro forma financial statements are projections or forecasts of future financial statements based on some assumed event or set of events, such as the acquisition of a new company or the introduction of a new product line. They are used to estimate the potential impact of these events on the financial performance of the company.

Pro Forma Financial Statements Are Used to ___________