Which of the Following Are Forms of Pro Forma Statements

question 28

Multiple Choice

Which of the following are forms of pro forma statements?

• A)income statements
• B)balance sheets
• C)costs of goods sold
• D)a and b

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Definitions:

Straight-Line Amortization

A method of uniformly reducing the book value of an intangible asset over its useful life.

Interest Expense

The expenditure faced by a company for financing through borrowed resources during a defined time.

Book Value

The value of a fixed asset, as recorded on a balance sheet, which represents its historical cost minus accumulated depreciation.

Debentures

A type of long-term debt instrument used by large companies to borrow money, at a fixed rate of interest, and not secured by physical assets or collateral.