Posted by evelyn on Sunday, January 7, 2007 at 9:49pm.
pro forma financial statements are
a. the most comprehensive means of financial forecasting
b. often required by prospective creditors
Thank you for using the Jiskha Homework Help Forum. Here is a definition of Pro Forma Financial Statements: Definition
Financial statements as adjusted to reflect a projected or planned transaction.
A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results in order to emphasize either current or projected figures.
Pro forma financial statements could be designed to reflect a proposed change, such as a merger or acquisition, or to emphasize certain figures when a company issues an earnings announcement to the public.
Investors should heed caution when reading a company's pro-forma financial statements, as the figures may not comply with generally accepted accounting principles (GAAP). In some cases, the pro-forma figures may differ greatly from the those derived from GAAP.
No one has answered this question yet.
Answer this Question
Related Questions
Math - using a systems approach to financial planning it is necessary to develop...
investing - Which of the following statements is true about financial planning? ...
Finance - 1. What is the interrelationship among the four financial statements? ...
ACCOUNTING - This is our next assignemt due. I do not know where to begin ...
accounting - Can somebody please help me understand what this is wanting? ...
accounting - Unusable Financial Statements Malissa is an accountant. Sometimes ...
intro topersonal financial - which part of the comprehensive financial plan do ...
personal financial planning - Which part of the comprehensive financial plan do ...
Finance - Using the financial statements for the Goodyear Calendar Company, ...
Accounting - What is the overall goal of consolidated financial statements? Why ...
For Further Reading
