The Key Inputs for Preparing Pro Forma Income Statements Using

question 17

Multiple Choice

The key inputs for preparing pro forma income statements using the simplified approaches are the

• A) sales forecast for the coming year and financial statements for the preceding year.
• B) sales forecast for the preceding year and financial statements for the coming year.
• C) cash budget for the coming year and sales forecast for the preceding year.
• D) sales forecast for the coming year and the cash budget for the preceding year.

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Definitions:

Desert

A barren area of landscape where little precipitation occurs, thus supporting only sparse vegetation or none at all.

Plate Tectonics

The scientific theory explaining the movement of the Earth's lithospheric plates and how these movements cause earthquakes, volcanoes, mountain ranges, and oceanic trenches.

Seafloor Spreading

The process by which oceanic crust is formed at mid-ocean ridges and moves outward from ridge crests, driven by tectonic plate movements.

Volcanic Activity

The process by which magma and gases are transferred from the Earth's mantle to its surface, including eruptions, lava flows, and gas emissions.