There Are a Variety of Ways to Produce Pro Forma

question 91

Multiple Choice

There are a variety of ways to produce pro forma statements,but they usually rely on two primary inputs.One of these primary inputs is ________.

• A)the projected sales for the coming year
• B)the projected sales for the past year
• C)next year's financial statements
• D)this year's financial statements

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Definitions:

Halo Effect

A cognitive bias in which an observer's overall impression of a person, company, brand, or product influences the observer's feelings and thoughts about that entity's character or properties.

Primacy Effect

The tendency for individuals to remember items at the beginning of a list better than items in the middle or at the end.

Matching Effect

A phenomenon where advertisements are more effective when their content is aligned with the mood or the mindset of the audience.

Mere-Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.