A firm's pro forma balance sheet typically starts with liabilities and equity and THEN proceeds to assets

Question

Quizplus · Accepted Answer

A firm's pro forma balance sheet typically starts with assets and then proceeds to liabilities and equity. This is because the pro forma balance sheet is a projection of how the company's assets will be financed through a combination of equity and debt, with assets being listed first to show what the company owns and how it will allocate its resources.

A Firm's Pro Forma Balance Sheet Typically Starts with Liabilities