The method in which pro forma statements are constructed by assuring that all items grow in proportion to sales is called the

Question

Quizplus · Accepted Answer

The method described in the question is commonly known as the Percentage of Sales Method, which involves assuming that all items on the financial statements will grow or decline in proportion to sales. This approach is useful for forecasting financial performance and projecting future financial needs. The other options - B, C, and D - are not common methods for constructing pro forma statements.

The Method in Which Pro Forma Statements Are Constructed by Assuring