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Pro Forma Earnings

Please see attached question. Thank you for your assistance!

Which one is not correct for pro forma earnings?

A. Pro forma earnings are used in valuation by the investor.
B. Pro forma earnings are based on the current GAAP.
C. The company does not need to disclose how to calculate the pro forma earnings.
D. Pro forma earnings are voluntarily disclosed by the firm.

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C. The company does not need to disclose how to calculate the pro forma earnings

This isn't true. ...

Solution Summary

This solution explains which statement is not correct for pro forma earnings.

$2.19