Which of the Below Does a Pro Forma Statement Tell

question 43

Multiple Choice

Which of the below does a pro forma statement tell us?

• A)For every sales dollar,it tells us what percentage went to produce the product.
• B)For every dollar in cost,it tells us what percentage ends up as net income.
• C)For every sales dollar,it tells us how much shareholders received in stock splits.
• D)Pro forma statements provide the information identified in all of the above choices.

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Definitions:

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.

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A particular philosophy or a specific way of thinking that is characteristic of a certain group or period.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Velocity of Money

The rate at which money circulates in the economy, typically measured as the ratio of GDP to the national money supply.