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:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful tool for performance evaluation.

Master Budget

A comprehensive financial planning document that includes all of an organization's financial plans and budgets.

Goal Conflict

A situation where two or more goals are in opposition, making it difficult to achieve one without compromising the other.

Budget Slack

The intentional underestimation of revenues or overestimation of expenses within a budget to create a cushion for unexpected situations.