A pro forma financial statement is a financial statement that: expresses all val

Question

A pro forma financial statement is a financial statement that:

expresses all values as a percentage of either total assets or total sales.

compares actual results to the budgeted amounts.

compares the performance of a firm to its industry.

projects future years' operations.

values all assets based on their current market values.

expresses all values as a percentage of either total assets or total sales.

compares actual results to the budgeted amounts.

compares the performance of a firm to its industry.

projects future years' operations.

values all assets based on their current market values.

Explanation / Answer

The correct answer is

projects future years' operations

Pro forma Financial statement of a company is prepared in advance of a future transaction such as merger, acquisitions etc.

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