Pro forma financial statements are
A) the most comprehensive means of financial forecasting.
B) often required by prospective creditors.
C) projections of financial statements for a future period.
D) All of the options are true.

Question

Quizplus · Accepted Answer

All of the options are true. Pro forma financial statements are comprehensive financial forecasts that are often required by prospective creditors to assess a company's ability to repay its debts. These projections take into account potential changes in revenue, expenses, and other financial metrics, and can be useful in evaluating the impact of proposed business decisions on a company's financial outcomes.

Pro Forma Financial Statements Are