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:

Tort Liability

Legal responsibility arising from civil wrongs or injuries caused to a person or property, not based on contracts.

Civilized Society

A society marked by the development of social, cultural, and legal institutions that reflect advanced stages of human progress.

Corporations

Legal entities separate from their owners, created under state law, capable of conducting business, owning assets, and incurring liabilities.

Tort Theory

An area of law that deals with civil wrongs and damages caused by one party to another, not arising from contracts.