If actual sales are equal to budgeted sales, the pro forma financial statements will be the same as the actual financial statements.

Question

Quizplus · Accepted Answer

Pro forma financial statements are prepared in advance and based on assumptions and projections, including budgeted sales. Actual financial statements are based on real transactions and events. Even if actual sales match budgeted sales, other factors such as expenses, investments, or unexpected financial events could differ, leading to variations between pro forma and actual financial statements.

If Actual Sales Are Equal to Budgeted Sales, the Pro