Question

Pro forma statements are based on?

1) historical information
2) estimated information
3) requirements of the Securities and Exchange Commission
4) Generally Accepted Accounting Principles (GAAP)

Answer 1

Answer:Pro forma statements are based on "2) estimated information"

Explanation:These statements are financial reports that project future financial performance based on assumptions, hypothetical events, or management's best estimates. They are not based solely on historical data but rather incorporate anticipated changes or events to provide a forward-looking view of a company's financial position, often used for planning and forecasting purposes.

Answer 2

Pro forma statements are financial documents based on estimated information, used for planning and decision-making by management. Pro forma statements are estimated information that businesses use for planning and managerial decision-making. These statements project future financial performance based on management's expectations and are not purely derived from historical data.

Step-by-step explanation:

Pro forma statements are estimated information that businesses use for planning and managerial decision-making. These statements project future financial performance based on management's expectations and are not purely derived from historical data. While pro forma statements may be influenced by Generally Accepted Accounting Principles (GAAP), they are not required by the Securities and Exchange Commission (SEC) in the same way that audited financial statements are.

Pro forma statements are financial statements that project the future financial position and performance of a company. They are prepared based on estimated information rather than historical information. Pro forma statements are used to make financial projections and assess the potential impact of certain events or decisions on a company's financials.