In Constructing a Pro Forma Balance Sheet a Manager Can

question 59

Multiple Choice

In constructing a pro forma balance sheet a manager can estimate the accounts receivable because:

• A)managers typically construct a pro forma income statement prior to the balance sheet.Thus,an estimate of sales has already been made and this is critical to estimating accounts receivable.
• B)if the firm has already made an estimate of expected sales,then it can also estimate average daily sales.
• C)if the firm maintains similar credit standards it can use the current average age of accounts receivable to help estimate the anticipated average age of accounts receivable
• D)if the firm has each piece of information as stated above THEN they can estimate accounts receivable for the pro forma balance sheet..

---

Definitions:

Control Panel

A part of the operating system that provides users with the ability to change system preferences and oversee the operation of hardware and software capabilities.

Icons

Small graphical symbols or images that represent programs, files, functions, or commands within a computer interface.

Dialog Box

A small window that prompts the user to enter information or select options when interacting with software applications.

Standard User

A type of computer account with permissions to use most software and system functions but restricted from making significant changes that affect system security or other users.