Of the following statements,which one is false?
A) Proforma financial statements are also called breakeven reports..
B) Proforma income statements estimate the profit and loss for the new business.
C) Proforma balance sheets show the financial structure of the business.
D) Proforma balance sheets allow investors to conduct ratio analysis.
E) All of the above are true.

Question

Quizplus · Accepted Answer

Proforma financial statements are not called breakeven reports. While breakeven analysis is a tool used in financial planning, it is not synonymous with proforma financial statements.

Of the Following Statements,which One Is False