The Two Main Weaknesses of Pro Forma Financial Statements Are

The two main weaknesses of pro forma financial statements are ________.

A) they produce inaccurate forecasts and they cannot be used by anyone outside the firm
B) they assume that the firm's past financial condition is an accurate indicator of its future and that managers can force particular accounts to take on particular desired values
C) stockholders take the pro forma forecasts too seriously,which causes volatility in stock prices when actual outcomes deviate from forecasts
D) pro forma statements provide useful forecasts of profits,but not cash flows,and they rely too much on the assumption that income statement items will grow at the same rate as sales