Which of the following is a true statement?
A) Pro forma financial statements are based on the company's budgets.
B) Companies prepare pro forma financial statements to show how their performance for the period will "look" if actual results match the budget.
C) Companies usually prepare a pro forma income statement, pro forma balance sheet, and pro forma statement of cash flows.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

Pro forma financial statements are indeed based on company budgets, are prepared to show potential performance if actual results match the budget, and typically include a pro forma income statement, balance sheet, and statement of cash flows.

Which of the Following Is a True Statement