Which of the Following Forecasts the Sales, Expenses, and Net

question 43

Multiple Choice

Which of the following forecasts the sales, expenses, and net income for the company in some future time period?

• A) inventory turnover ratio
• B) net working capital
• C) pro forma income statement
• D) pro forma balance sheet

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Definitions:

Ledger Accounts

Records that reflect the financial transactions of a company, organized within a book or a computerized accounting system.

Bank Loan Payable

Bank loan payable is a liability account that reflects the amount of money borrowed from a bank by a company or individual that is yet to be repaid.

Machinery

Consists of the machines and equipment designed to perform specific tasks in industrial, commercial, or agricultural applications.