Which of the Following Guidelines Is Not a Presentation That

question 82

Multiple Choice

Which of the following guidelines is not a presentation that pro forma financial information should adhere to?

• A) It should describe the transaction or event that is reflected in the pro forma financial information.
• B) It should describe significant assumptions used to develop the pro format adjustments.
• C) It should make clear that the pro forma financial information is indicative of results that would have been achieved had the transaction or event actually taken place at an earlier time.
• D) It should describe any significant uncertainties about those assumptions.

---

Definitions:

Pre-Editing Phase

The initial stage of reviewing written material, focusing on the content's organization and coherence before detailed editing.

Reasonable Options

Choices or alternatives that are sensible and based on sound judgment or evidence.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.