Given one or more hypothetical assumptions, a responsible party may prepare, to the best of his knowledge and belief, an entity's expected financial position, results of operations, and changes in cash flows. Such prospective financial statements are known as:
A)pro forma financial statements.
B)financial projections.
C)partial presentations.
D)financial forecasts.

Question

Quizplus · Accepted Answer

Financial projections are based on hypothetical assumptions and reflect the expected financial position and results of operations under those assumptions.

Given One or More Hypothetical Assumptions, a Responsible Party May