Projected financial statements can be prepared on all of the following bases except:
A) a pessimistic view of likely future events.
B) known future events.
C) a 'most likely' view of future events.
D) an optimistic view of likely future events.

Question

Quizplus · Accepted Answer

Projected financial statements cannot be prepared on the basis of known future events (such as already signed contracts, confirmed orders, or existing agreements). They can only be prepared based on expected future events. However, they can be prepared based on a pessimistic, 'most likely', or optimistic view of future events.

Projected Financial Statements Can Be Prepared on All of the Following