When estimating expenses for the pro format income statement,it is best to be conservative.

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Quizplus · Accepted Answer

It is important to be conservative when estimating expenses for the pro forma income statement as it ensures that the estimated profits are not overstated. Overstated profits can lead to inaccurate financial projections and potentially hinder decision making. Being conservative helps to provide a more realistic and accurate estimate of future expenses and overall financial performance.

When Estimating Expenses for the Pro Format Income Statement,it Is