The ________ Method of Developing a Pro Forma Income Statement

question 133

Multiple Choice

The ________ method of developing a pro forma income statement forecasts sales and values for the cost of goods sold, operating expenses, and interest expense that are expressed as a ratio of projected sales.

• A) percent of sales
• B) accrual
• C) judgmental
• D) cash

---

Definitions:

Adequacy

The quality of being sufficient or suitable for a particular purpose or to meet a specific requirement.

Logical Strength

The extent to which the premises of an argument support its conclusion, often measured by the argument's ability to convincingly justify the truth of the conclusion.

Complete

Refers to something that is whole, finished, or having all necessary parts.

Explanandum

The phenomenon or event that is to be explained in scientific inquiry or philosophical argument.