Question

Pro forma financial information: a. Is found in the statement of stockholders' equity b. Is always presented on a generally accepted accounting principles (GAAP) basis c. Usually focuses on pro forma earnings, usually on a non-GAAP basis d. Is illegal

Answer 1

Is always presented on a generally accepted accounting principles (GAAP) basis

Answer: Option B.

Step-by-step explanation:

Pro forma statements incorporate changes made to GAAP explanations to give a "genuine" image of the organization's accounts. Pro forma proclamations can be increasingly precise however they can likewise be manhandled, as specific charges that truly have a place can be avoided, for example, stock-based remuneration.

With making it based on GAAP, the statements are made more precise and concise. They are made accurate.