Statements that show the financial statements as if proposed transactions had already occurred are called:
A)Pro forma statements.
B)Professional statements.
C)Simplified statements.
D)Temporary statements.
E)Interim statements.

Question

Quizplus · Accepted Answer

Pro forma statements are used to show the financial impact of hypothetical or proposed transactions on an organization's financial statements. These statements include adjustments to reflect the effects of the proposed transactions, such as changes in revenue, expenses, assets, and liabilities. Pro forma statements are often used in financial forecasting and analysis, mergers and acquisitions, and other strategic planning activities.

Statements That Show the Financial Statements as If Proposed Transactions