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

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Definitions:

Internal Revenue Service

The Internal Revenue Service (IRS) is the agency of the U.S. government tasked with collecting taxes and enforcing the laws related to taxes.

Government in the Sunshine Act

A U.S. law aimed at ensuring that agencies conduct their meetings in public, promoting transparency.

Public Observation

The act of watching, monitoring, or scrutinizing activities, processes, or events by the general public, often for oversight or interest purposes.

Administrative Inspections

Routine examinations or checks conducted by governmental agencies to ensure compliance with laws, regulations, and standards.