Statements That Show the Financial Statements as If Proposed Transactions

question 23

Multiple Choice

Statements that show the financial statements as if proposed transactions had already occurred are called:

• A)Pro forma statements.
• B)Professional statements.
• C)Simplified statements.
• D)Temporary statements.
• E)Interim statements.

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Definitions:

Revenue

The total income received by a company from its normal business activities, before any expenses are subtracted.

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.

Current Liabilities

Liabilities that a company is obligated to pay within one year or within its normal operating cycle if longer.