Pro forma financial statements are statements based on which one of the following?
A) projected future income, cash flows, and other non-cash items
B) historical revenue and expenses
C) historical asset and liability values
D) current period cash flows
E) current period revenues and expenses

Question

Quizplus · Accepted Answer

Pro forma financial statements are based on projected future income, cash flows, and other non-cash items. They are used to forecast financial performance under specific scenarios or assumptions, such as a new product launch, a merger or acquisition, or changes in market conditions. Pro forma statements can help businesses plan for the future and make strategic decisions based on expected outcomes.

Pro Forma Financial Statements Are Statements Based on Which One