Indicate whether each of the following statements is true or false.
1. A pro forma income statement provides a review of a company's profitability over the past year.
2. Budgets are usually prepared using spreadsheet software.
3. The pro forma statement of cash flows is essentially the same as the cash budget.
4. Pro forma financial statements must be prepared near the end of the budgeting process because they are affected by each of a company's budgets.
5. Once the master budget is prepared, company managers should continue to review the budget and adjust it for changes in assumptions or conditions.

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The Answer of Indicate whether each of the following statements is true or false.
1. A pro forma income statement provides a review of a company's profitability over the past year.
2. Budgets are usually prepared using spreadsheet software.
3. The pro forma statement of cash flows is essentially the same as the cash budget.
4. Pro forma financial statements must be prepared near the end of the budgeting process because they are affected by each of a company's budgets.
5. Once the master budget is prepared, company managers should continue to review the budget and adjust it for changes in assumptions or conditions.

Indicate Whether Each of the Following Statements Is True or False