Which Statement Is Most Correct Regarding How Pro Forma Financial

question 5

Multiple Choice

Which statement is most correct regarding how pro forma financial statements can be used to estimate additional funds needed?

• A) Pro forma statements can be used to iteratively refine the amount of additional funds needed.
• B) Pro forma statements are less precise than other methods for determining additional funds needed.
• C) Pro forma statements take into account changes in cost of goods sold that other methods of determining additional funds needed ignore.
• D) Pro forma statements take into account dividend payments that other methods of determining additional funds needed ignore.

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Definitions:

Change Process

The sequence of stages involved in moving from a current state to a desired future state.

Crises

Significant and often sudden adverse events that can disrupt an organization or society, requiring urgent and effective responses.

Resistance

Overt or covert failure by organizational members to support a change effort.

Fundamental Aspect

A core or essential part of something that is crucial to its nature or function.