Which of the Following Statements About Pro Forma Financial Statements

question 3

Multiple Choice

Which of the following statements about pro forma financial statements is incorrect?

• A) Pro forma financial statements are projections for future periods based on forecasts.
• B) Pro forma financial statements are typically completed for two to three years into the future.
• C) Pro forma financial statements are required by the SEC.
• D) Most companies consider their pro forma financial statements to be confidential and reveal them to outsiders only on a "need to know basis."
• E) Pro forma financial statements are strictly planning tools.

Understand the impact of supply uncertainty reduction on safety inventory requirements.

Grasp the concept of postponement in supply chain management.

Comprehend the conditions that lead to shortages in replenishment cycles.

Identify and explain the differences between continuous and periodic review policies for inventory replenishment.