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

Question

Quizplus · Accepted Answer

The two major projected financial statements developed during financial planning are the pro forma balance sheet and the pro forma income statement. The pro forma balance sheet shows the company's projected financial position at a specific point in time, while the pro forma income statement shows the company's projected profitability over a specific period of time. These statements help in planning and decision-making by providing a clear picture of the company's expected financial performance in the future.

What Are Two Major Projected Financial Statements Developed During Financial