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State Whether the Following Statements are True or False.
Q. Proforma investment decisions relates to how the enterprise funds are required in different assets so that the enterprise is able to earn the highest possible returns on investment.
  • a)
    True
  • b)
    False
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
State Whether the Following Statements are True or False.Q.Proforma in...
  • Pro forma, Latin for “as a matter of form” or “for the sake of form”, is a method of calculating financial results using certain projections or presumptions.
  • Pro forma financials may not be GAAP compliant but can be issued to the public to highlight certain items for potential investors.
  • They can also be used internally by management for aiding in business decisions.
  • It's illegal for publicly traded companies to mislead investors with pro forma financial results that do not use the most conservative possible estimates of revenue and expense.
     
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State Whether the Following Statements are True or False.Q.Proforma investment decisions relates to how the enterprise funds are required in different assetsso that the enterprise is able to earn the highest possible returns on investment.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?
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