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

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Definitions:

General Journal

A primary bookkeeping ledger used by businesses to record all transactions in chronological order.

General Ledger

The comprehensive set of accounts that records all transactions of a business, serving as the foundation for preparing financial statements.

Accounting Time Periods

The specific intervals or time frames for which financial information is reported, such as monthly, quarterly, or annually.

Interim Periods

Shorter reporting periods within a fiscal year, such as quarters or months, used by companies to provide timely financial information.