Because pro forma cash flow and income statements are based on best estimates, it is sometimes useful to provide __________.
A) several scenarios, based on different levels of success
B) revisions of projections to provide accurate information
C) a cash cushion in liquid investment to be used during negative cash flow periods
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct. Pro forma cash flow and income statements are based on best estimates, so it is useful to provide several scenarios based on different levels of success, revisions of projections to provide accurate information, and a cash cushion in liquid investment to be used during negative cash flow periods.

Because Pro Forma Cash Flow and Income Statements Are Based