A Major Purpose of a Pro-Forma Earnings Statement Is to Exclude

question 11

Multiple Choice

A major purpose of a pro-forma earnings statement is to exclude

• A) salaries paid to non-productive employees.
• B) kickbacks paid to the company by large customers
• C) one-time charges not related to future earnings.
• D) operating costs.

---

Definitions:

Anecdotal Information

Informal accounts or personal observations used as evidence but not scientifically proven.

Assessment Instruments

Tools and methods used to evaluate or measure specific traits, abilities, or knowledge in individuals.

Observation

The active acquisition of information from a primary source using the senses or instruments that extend the senses.

Rank Order

A method of arranging data or items in a sequence based on their value or magnitude, from highest to lowest or vice versa.