The___________ Method of Developing a Pro Forma Balance Sheet Estimates

question 71

Multiple Choice

The___________ method of developing a pro forma balance sheet estimates values of certain balancesheet accounts while others are calculated. In this method, the firm's external financing is used as abalancing, or plug, figure.

• A) accrual
• B) judgmental
• C) percent-of-sales
• D) cash

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Definitions:

Alfalfa

A plant widely used for livestock feed due to its high nutritional content and also used as a cover crop for soil improvement.

Perfectly Elastic

Refers to a situation where a small change in price leads to an infinite change in quantity demanded or supplied.

Individual Firm's Demand Curve

The graph showing the quantity of a product that a firm is willing and able to sell at various prices, holding other factors constant.

Industry Supply

The total amount of a good or service that producers in a particular industry are willing and able to offer for sale at different price levels.