The Key Inputs for Preparing Pro Forma Income Statements Using

question 148

Multiple Choice

The key inputs for preparing pro forma income statements using the simplified approaches are the ________.

• A) sales forecast for the preceding year and financial statements for the coming year
• B) sales forecast for the coming year and the cash budget for the preceding year
• C) sales forecast for the coming year and financial statements for the preceding year
• D) cash budget for the coming year and sales forecast for the preceding year

---

Definitions:

Human Resources

The division of a company involved in recruiting, hiring, training, and managing employees, focusing on enhancing workforce performance and compliance.

Operations Manager

A professional responsible for overseeing the production of goods and services, ensuring that business operations are efficient, effective, and aligned with the company's goals.

Process Control Systems

Automated systems used to monitor and control physical processes to ensure they operate within set parameters and quality standards.

Statistical Process Control Charts

Tools used in quality control that plot data over time to identify variances from the norm, highlighting potential issues requiring investigation.