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When creating pro forma statements,the changes in the liabilities and owners' equity sections depend primarily on the firm's
Return on Investment
A measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.
Deferred Tax Liability
A tax obligation owed by an entity in the future due to temporary differences between the book value of assets and liabilities and their tax value.
Income Tax Expense
The expense reported on the income statement that represents the amount of income tax a company owes to governmental authorities.
Tax Rate
The percentage at which an individual or corporation is taxed.
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