The ________ method of developing a pro forma balance sheet estimates values of certain balance sheet accounts while external financing is used as a balancing, or plug, figure.
A) percent-of-sales
B) accrual
C) judgmental
D) cash

Question

Quizplus · Accepted Answer

The judgmental method of developing a pro forma balance sheet involves estimating the values of certain balance sheet accounts, and then using external financing as a balancing, or plug, figure to ensure the balance sheet balances. This method relies on managerial judgment to estimate account values.

The ________ Method of Developing a Pro Forma Balance Sheet