Which of the Following Is a True Statement

question 131

Multiple Choice

Which of the following is a true statement?

• A) Pro forma financial statements are based on the company's budgets.
• B) Companies prepare pro forma financial statements to show how their performance for the period will "look" if actual results match the budget.
• C) Companies usually prepare a pro forma income statement, pro forma balance sheet, and pro forma statement of cash flows.
• D) All of these answers are correct.

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Definitions:

Welfare Benefits

Financial or material aid provided by the government to individuals or groups in need.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and over, as well as for some younger people with disabilities.

Medicaid

A social health care program for families and individuals with low income and resources in the United States.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the 1930s to respond to the Great Depression.