An adjustment in the pro forma statement may be necessary for ________ expenses in line with known changes to these expenses that may not correspond directly with sales or production.
A)cash
B)credit
C)selling,general,and administrative
D)cash and credit

Question

Quizplus · Accepted Answer

Selling, general, and administrative (SG&A) expenses are not directly tied to sales or production and may require adjustments in the pro forma statement based on known changes to these expenses. Cash and credit expenses may be included in SG&A but are not the only components of this category of expenses.

An Adjustment in the Pro Forma Statement May Be Necessary