Pro Forma Is a Term That Describes Estimates of What

question 65

True/False

Pro forma is a term that describes estimates of what a firm's balance sheets and income statements will look like in the future.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in cash.

Net Income

The net income of a company once all costs and taxes are deducted from its total revenue.

Short-Term Stock Investments

Investments in stocks that are intended to be held for a short period, typically less than one year, for earning quick profits.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.