Final answer:
The statement about pro forma statements being budgeted financial statements is True. Pro forma statements involve assumptions and projections used for future planning, including income statements and balance sheets.
Step-by-step explanation:
The statement that budgeted financial statements are called pro forma statements is True. Pro forma statements are financial reports that companies use to plan and prepare for the future. They are, in essence, hypothetical models that are based on assumptions and estimates.
Pro forma financial statements typically include a budgeted income statement, balance sheet, and statement of cash flows. Their purpose is to project the company's financial position under a set of expected conditions, which can range from an optimistic 'best case' scenario to a conservative 'worst case' scenario.