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.

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Definitions:

Ideal

A concept or standard of perfection that is aspired to; often used in the context of goals, values, or qualities that are deemed to be the most desirable.

Ought

A term expressing duty, correctness, or moral obligation, indicating what should be done.

Self-assessment

The process of evaluating one's own thoughts, feelings, behaviors, and abilities, often in relation to personal goals or standards.

Psychology

The science that studies behavior and the physiological and mental processes that underlie it and the profession that applies the accumulated knowledge of this science to practical problems.