Asked by wydia cooper on Jul 17, 2024
Verified
Pro forma statements for a proposed project should be compiled on a stand-alone basis.
Pro Forma Statements
Financial statements that show how the actual statements would have looked on a certain date if a specific financial transaction had occurred earlier.
Stand-Alone Basis
refers to evaluating an investment or project on its own merits without considering its interaction with other investments or projects.
- Comprehend the need for preparing pro forma statements on a stand-alone basis for proposed projects.
Verified Answer
ZP
Zamaphelo PreciousJul 21, 2024
Final Answer :
True
Explanation :
Pro forma statements for a proposed project should indeed be compiled on a stand-alone basis to isolate the project's financial performance and assess its viability without the influence of the company's other operations.
Learning Objectives
- Comprehend the need for preparing pro forma statements on a stand-alone basis for proposed projects.