The Method in Which Pro Forma Statements Are Constructed by Assuring

question 62

Multiple Choice

The method in which pro forma statements are constructed by assuring that all items grow in proportion to sales is called the

• A) percentage of sales method
• B) common size method
• C) sales dilution method
• D) sales receipt method

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Definitions:

Confidentiality

The principle of maintaining privacy by not disclosing information shared in a trusted relationship, unless consented to or otherwise required by law.

Relative Confidentiality

A principle in certain professions where the confidentiality of client information is respected but may be overridden in specific circumstances determined by law or ethical guidelines.

Privilege

Special rights, advantages, or immunities granted or available only to a particular person or group of people.

Maximizing

The process of making the most or best use of resources, opportunities, or capabilities.