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
Answers a conceptual question on pro-forma financial statements.