Which of the following projects the types and amounts of assets a company will require to carry out its future plans and forecasts the amount of additional funds that will be needed to acquire those assets?
A) prototype operating budget
B) statement of net working capital
C) pro forma income sheet
D) pro forma balance sheet

Question

Quizplus · Accepted Answer

The pro forma balance sheet is a financial statement that projects the types and amounts of assets a company will require to carry out its future plans and forecasts the amount of additional funds that will be needed to acquire those assets. This statement shows a company's assets, liabilities, and equity as they are expected to look at the end of a future accounting period, based on current trends and estimates. Options A, B, and C are related to other financial statements but do not provide the same information as a pro forma balance sheet.

Which of the Following Projects the Types and Amounts of Assets