In the development of the pro forma financial statements, the last step in the process is the development of the
A) cash budget.
B) pro forma balance sheet.
C) pro forma income statement.
D) capital budget.

Question

Quizplus · Accepted Answer

The last step in developing pro forma financial statements is typically the creation of the pro forma balance sheet. This statement shows the projected financial position of the company at a specific point in time, taking into account projected assets, liabilities, and equity. The cash budget, pro forma income statement, and capital budget may be developed earlier in the process and inform the projections included in the pro forma balance sheet.

In the Development of the Pro Forma Financial Statements, the Last