ACCT 92 Week 9 -II

Which of the following best describes "Retained Earnings" in a Pro-forma Balance Sheet?

• A) Total revenue from sales

• B) Profits reinvested in the business

• C) Cash balance

• D) Current liabilities

In a Pro-forma Income Statement, Net Income is calculated as:

• A) Gross Profit - COGS

• B) Operating Profit - Taxes and Interest

• C) Assets - Liabilities

• D) Revenue - Expenses

Which of these accounts is classified under Current Assets in a Pro-forma Balance Sheet?

• A) Long-term Debt

• B) Accounts Receivable

• C) Retained Earnings

• D) Equity

Which of the following statements is true about Pro-forma Financial Statements?

• A) They are used solely for tax filing.

• B) They represent historical data.

• C) They are projections of future financial results.

Which of the following items would NOT typically appear on a Pro-forma Income Statement?

• A) Sales Revenue

• B) Net Income

• C) Retained Earnings

• D) Operating Expenses

On a Pro-forma Balance Sheet, "Inventory" is typically categorized under:

• A) Current Liabilities

• B) Equity

• C) Current Assets

• D) Non-Current Liabilities

In financial projections, an increase in COGS will generally lead to a:

• A) Increase in Gross Profit

• B) Decrease in Gross Profit

• C) Increase in Net Income

• D) Increase in Equity

What type of expense is subtracted after Gross Profit but before Operating Profit in a Pro-forma Income Statement?

• A) Interest Expense

• B) Tax Expense

• C) Operating Expenses

• D) Dividends

On a Pro-forma Balance Sheet, long-term debts typically appear under:

• A) Current Assets

• B) Non-Current Liabilities

• C) Current Liabilities

• D) Equity

Which of these is a common use of Pro-forma Financial Statements?

• A) Daily sales tracking

• B) Estimating future profitability

• C) Tracking actual cash flow

• D) Calculating exact tax amounts