Which of the following statements about pro forma financial statements is incorrect?
A) Pro form financial statements are projections for future periods based on forecasts.
B) Pro forma financial statements are typically completed for two to three years in the future.
C) Pro forma financial statements are required by the SEC.
D) Most companies consider their pro forma financial statements to be confidential and reveal them to outsiders only on a "need to know basis."
E) Pro forma financial statements are strictly planning tools.

Question

Quizplus · Accepted Answer

Pro forma financial statements are not required by the SEC, but companies may voluntarily disclose them to provide additional information to investors.

Which of the Following Statements About Pro Forma Financial Statements