Financial forecasts are reported as __________ financial statements.
A)final
B)initial
C)pro forma
D)hypothetical

Question

Quizplus · Accepted Answer

Financial forecasts are typically reported as pro forma financial statements, which are projections of expected financial performance based on assumptions and estimates. These statements are meant to provide insight into the company's potential future performance and help guide decision-making. Final financial statements reflect actual results and are prepared after the end of an accounting period, while initial and hypothetical financial statements are not commonly used terms in accounting.

Financial Forecasts Are Reported as __________ Financial Statements