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Pro-forma financial statements

Which one of the following statements regarding pro-forma financial statements is false?

a. Pro-forma financial statements include an income statement, a balance sheet, and a statement
of cash flows.
b. The pro-forma financial statements complete the master budget for a company.
c. Pro-forma financial statements help companies make decisions regarding dividends and
management bonus opportunities for the coming year.
d. Most companies do not create pro-forma financial statements because of the many assumptions

Solution Summary

Answers a conceptual question on pro-forma financial statements.