Benchmarks, industry norms, and financial ratios are typically used in preparing proforma financial statements for which of the following reasons?
A) They can provide reasonable assumptions regarding expenditures based on industry history and trends.
B) They take the guesswork out of estimating sales and expenses.
C) They are readily available for most industries.
D) They can be used as a basis for comparison with the entrepreneur's estimates.
E) All of the answers are correct.

Question

Quizplus · Accepted Answer

Benchmarks, industry norms, and financial ratios help in making informed assumptions, reducing guesswork, are widely available, and serve as a comparison basis, making all options correct.

Benchmarks, Industry Norms, and Financial Ratios Are Typically Used in Preparing