Which of the following statements concerning pro forma disclosures is not true?
A)They show the effects of major transactions that occur after the end of the fiscal period.
B)They show the effects of major transactions that have occurred during the year but are not fully reflected in the company's historical cost financial statements.
C)The SEC requires these to be presented only when the company has made an unusual asset exchange,or a restructuring of existing indebtedness.
D)They often take the form of summarized financial statements.

Question

Quizplus · Accepted Answer

The statement that the SEC requires pro forma disclosures only when the company has made an unusual asset exchange or a restructuring of existing indebtedness is not true. The SEC requires pro forma disclosures for any major transaction that affects the company's financial statements.

Which of the Following Statements Concerning Pro Forma Disclosures Is