Creating Projected (Pro Forma) Financial Statements Would Allow a Business

question 120

Multiple Choice

Creating projected (pro forma) financial statements would allow a business owner to answer which of the following questions?

• A) What profit can my business expect to achieve?
• B) What sales level must my business reach if our targeted profit is × dollars?
• C) What fixed and variable expenses can my business expect to incur at our targeted sales level?
• D) All of the above

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Definitions:

Seat Belt

A safety device in vehicles designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.

Millennials

The generation born after 1980, the first to come of age and enter emerging adulthood in the new millennium.

Generation

A group of individuals, most often referring to people, born and living around the same time, typically segmented by decades.

After 1980

Refers to the time period following the year 1980, often used in discussions about cultural, technological, or societal changes.