The most common approach to developing proforma financial statements is called the:
A) cash budget method.
B) financial planning method.
C) seasonality approach.
D) percent-of-sales method.
E) market-oriented approach.
F) None of the above.

Question

Quizplus · Accepted Answer

The most common approach to developing proforma financial statements is the percent-of-sales method, also known as the income statement method. This approach involves projecting income statement items as a percentage of sales, based on historical data and assumptions about future trends.

The Most Common Approach to Developing Proforma Financial Statements Is