Why Would a Firm Prepare Pro Forma Financial Statements

question 94

Multiple Choice

Why would a firm prepare pro forma financial statements?

• A)to ascertain whether operations will generate sufficient cash flows to finance expenditures on long-term assets or whether the firm will need to borrow more
• B)to analyze the effect of a change its product lines or pricing policies and the impact on rates of return.
• C)to project future financial statement amounts for an acquisition target to ascertain the price it should pay
• D)all of the above
• E)none of the above

Recognize the legal protections and requirements for consumers and banks under the Uniform Commercial Code (UCC) related to check alterations and forgeries.

Understand the relationship between the drawer, drawee, and payee in the context of check transactions.

Learn about the obligations and liabilities of drawers and endorsers regarding check alterations, negligence, and recovery.

Understand the process and legal implications of check collection within the banking system.