What are two major projected financial statements developed during financial planning?
A) predicted statement of cash flows and predicted income statement
B) pro forma balance sheet and pro forma income statement
C) forecasted balance sheet and forecasted statement of cash flows
D) prototype retained earnings statement and prototype balance sheet

Question

Quizplus · Accepted Answer

Pro forma balance sheet and pro forma income statement are the two major projected financial statements developed during financial planning. The pro forma income statement includes predicted revenue, expenses, and earnings for a period, while the pro forma balance sheet shows the predicted financial position of the company at a specific point in time.

What Are Two Major Projected Financial Statements Developed During Financial