Which of the following is the correct sequence of events?
A) pro forma balance sheet, pro forma income statement, pro forma cash budget
B) pro forma balance sheet, pro forma cash budget, pro forma income statement
C) pro forma income statement, pro forma cash budget, pro forma balance sheet
D) None of the above.

Question

Quizplus · Accepted Answer

The correct sequence for preparing financial statements is first to create the pro forma income statement, which estimates future revenues and expenses. Next, the pro forma cash budget is prepared, which forecasts future cash flows and cash balances. Finally, the pro forma balance sheet is created, incorporating the data from the income statement and cash budget to show the company's projected financial position at a future date.

Which of the Following Is the Correct Sequence of Events