Pro forma financial statements display the financial situation of a firm based on:
A)an actual event.
B)an assumed event.
C)a catastrophic event that recently happened to the firm.
D)the firm's worst sales year.

Question

Quizplus · Accepted Answer

Pro forma financial statements are based on assumed or projected events, such as a proposed business expansion or an anticipated merger. They are used to estimate the potential financial impact of these events on the company's overall financial situation.

Pro Forma Financial Statements Display the Financial Situation of a Firm