Cash budgets and pro forma statements are useful not only for internal financial planning but also are routinely required by the Internal Revenue Service (IRS).

Question

Quizplus · Accepted Answer

Cash budgets and pro forma statements are primarily used for internal financial planning and decision-making. While the IRS may request these documents during an audit, they are not routinely required by the agency.

Cash Budgets and Pro Forma Statements Are Useful Not Only