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Which of the Following Are True About Pro Forma Statements

Question 8

Multiple Choice

Which of the following are true about pro forma statements?


A) They are used prolifically in large companies but rarely used in small companies.
B) They do not give accurate information.
C) They are key to determining the financial needs of the organization.
D) They are guidelines against which one can measure how given assumptions relate to reality.
E) They are only an estimate of what might happen given a certain defined set of circumstances and the validity of your assumptions.

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