ACCT 92 Week 9-I

What is a Pro-forma Income Statement?

• A) A statement of past income

• B) A statement of estimated future income

• B) A statement of estimated future income

• D) A statement of current assets

Which of the following is a primary purpose of a Pro-forma Balance Sheet?

• A) To record past transactions

• B) To estimate future financial position

• C) To calculate depreciation

• D) To record only liabilities

What is often the first item listed on a Pro-forma Income Statement?

• What is often the first item listed on a Pro-forma Income Statement?

• B) Revenue or Sales

• C) Expenses

• D) Gross Profit

Which section of the Pro-forma Balance Sheet represents what a company owns?

• A) Liabilities

• B) Equity

• C) Assets

• D) Revenues

In a Pro-forma Income Statement, what does "COGS" stand for?

• A) Cost of Goods Sold

• B) Cash on Goods Sold

• C) Current Operating Gross Sales

• C) Current Operating Gross Sales

Which of these would appear under "Liabilities" on a Pro-forma Balance Sheet?

• A) Cash

• B) Accounts Payable

• C) Retained Earnings

• D) Inventory

A Pro-forma statement is created for which of the following purposes?

• A) Historical analysis

• B) Future projections

• C) Tax filing

• D) Dividend payments

Which formula is used to calculate Gross Profit in a Pro-forma Income Statement?

• A) Revenue - COGS

• B) Assets - Liabilities

• C) Revenue - Operating Expenses

• D) COGS - Operating Expenses

Which of the following is usually subtracted from Gross Profit to calculate Operating Profit?

• A) Interest Expense

• B) Operating Expenses

• C) Liabilities

• D) Assets

On a Pro-forma Balance Sheet, what is Equity often calculated as?

• A) Assets - Liabilities

• B) Revenue - Expenses

• C) Current Assets - Current Liabilities

• D) Sales - COGS