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 prospective financial statements that include one or more hypothetical assumptions, reflecting the responsible party's best knowledge and belief about the entity's future financial position and operations.

Given One or More Hypothetical Assumptions, a Responsible Party May