Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a:

Question

Quizplus · Accepted Answer

Choice "A" is correct. "Partial presentations" are presentations of prospective financial information which would not ordinarily be appropriate for general use because they omit one or more of these essential elements: (a) sales or gross revenue, (b) gross profit or cost of sales, (c) unusual or infrequently occurring items, (d) provision for income taxes, (e) discontinued operations or extraordinary items, (f) income from continuing operations, (g) net income, (h) earnings per share, and (i) significant changes in financial position. Choices "B", "C", and "D" are incorrect. Projected balance sheets, financial forecasts and financial projections are forms of prospective financial statements.

Prospective Financial Information Presented in the Format of Historical Financial