Which One of the Following Statements Is Correct

question 77

Multiple Choice

Which one of the following statements is correct?

• A)Pro forma statements must assume that no new equity is issued.
• B)Pro forma statements are projections, not guarantees.
• C)Pro forma statements are limited to a balance sheet and income statement.
• D)Pro forma financial statements must assume that no dividends will be paid.
• E)Net working capital needs are excluded from pro forma computations.

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Definitions:

Marginal Product

Marginal product refers to the additional output that is generated by employing one more unit of a particular input, holding the quantities of other inputs constant.

Fertilizer

Materials, either natural or synthetic, applied to soils or directly to plants, to supply nutrients essential for growth.

Bushels

A unit of volume that is used primarily in the United States for quantifying the volume of agricultural commodities like grains.

Profit

The income earned when the total revenue from business activities is higher than the combined expenses, costs, and taxes necessary for those activities.