Jamie Diehl Has Spent the Past Several Days Pouring Over

question 42

Multiple Choice

Jamie Diehl has spent the past several days pouring over her historical financial statements and her projections for future sales periods based on forecasts. Jamie's objective is to develop a set of financial statements that she can show to an investor, which will reflect the projected financial status of her firm for the next two-three years. Jamie is working on creating a set of ________ financial statements.

• A) simulated
• B) pro forma
• C) improvised
• D) ad-hoc
• E) concurrent

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Definitions:

Dividends

A portion of a company's earnings that is paid to shareholders, usually on a quarterly basis.

Fixed Assets

Long-term tangible assets that a company uses in its operations and that are not intended to be sold in the regular course of business.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, typically noted on the income statement as a non-operating expense.

Depreciation

A method used in accounting to divide the expenditure of a tangible asset over the time it is useful.