Answer:
Pro forma.
Step-by-step explanation:
The idea is to write down a sequence of financial statements that represent expectations of what the results of actions and policies will be on the future financial status of the firm. Income statement measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses. Also known as statement of “revenue and expenses”.
Pro forma financial statements are used in varied ways.
-Pro forma Financial Statements Projections
-Pro forma Financial Statements for Funding
-Pro forma Financial Statements for M&A Analysis
-Pro Forma Financial Statements for Risk Analysis
One issue with using Pro Forma Financial Statements is that many Companies tend to manipulate pro forma financial statements by including or excluding various items.