Under the Judgmental Approach for Developing a Pro Forma Balance

question 145

Multiple Choice

Under the judgmental approach for developing a pro forma balance sheet, the "plug" figure required to bring the statement into balance may be called the ________.

• A) cash balance
• B) retained earnings
• C) external financing required
• D) accounts receivable

---

Definitions:

Legal Obligation

A legal obligation is a duty enforced by law, requiring an individual or entity to act in a specified manner or refrain from certain actions.

Closing

The concluding part of a document or message that summarizes the main points or presents a final thought.

Bad-news Communication

The process of conveying unfortunate or disappointing information in a sensitive and thoughtful manner.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work.