Statements that show the effects of proposed transactions as if the transactions had already occurred are called:
A) Pro forma statements.
B) Professional statements.
C) Simplified statements.
D) Temporary statements.
E) Interim statements.

Question

Quizplus · Accepted Answer

Pro forma statements are used to show the projected financial results of a proposed transaction or event. They involve adjusting the historical financial statements to reflect the effects of the proposed transaction as if it had already occurred.

Statements That Show the Effects of Proposed Transactions as If