Which of the following statements about pro forma financial statements is incorrect?
A) Pro forma financial statements are projections for future periods based on forecasts.
B) Pro forma financial statements are typically completed for two to three years into the future.
C) Pro forma financial statements are required by the SEC.
D) Most companies consider their pro forma financial statements to be confidential and reveal them to outsiders only on a "need to know basis."
E) Pro forma financial statements are strictly planning tools.

Question

Quizplus · Accepted Answer

Pro forma financial statements are not required by the SEC, but they may be used in filings with the SEC to provide additional information or to support certain disclosures.

Which of the Following Statements About Pro Forma Financial Statements