Which of the Following Statements About Pro Forma Financial Statements

question 3

Multiple Choice

Which of the following statements about pro forma financial statements is incorrect?

• A) Pro forma financial statements are projections for future periods based on forecasts.
• B) Pro forma financial statements are typically completed for two to three years into the future.
• C) Pro forma financial statements are required by the SEC.
• D) Most companies consider their pro forma financial statements to be confidential and reveal them to outsiders only on a "need to know basis."
• E) Pro forma financial statements are strictly planning tools.

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