When creating pro forma statements,the changes in the liabilities and owners' equity sections depend primarily on the firm's
A)financing policies.
B)interest rates and financing policies.
C)dividend and financing policies.
D)retained earnings policies.
E)rate of sales growth.

Question

Quizplus · Accepted Answer

The liabilities and owners' equity sections in pro forma statements are influenced by the firm's dividend and financing policies, as these determine how profits are distributed and how additional funds are raised.

When Creating Pro Forma Statements,the Changes in the Liabilities and Owners