All 34 The Master Budget questions
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What is the master budget? What are the two main components of the master budget? What is the selling and administrative expense budget? What is the ending inventory budget? What are the three financial statements produced by the master budget? Why is the master budget prepared before the period begins? What is a pro forma cash flow statement in the master budget? What is the first budget prepared in the master budget and why? What is a budgeted income statement used for? In what order are the components of the master budget prepared?
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What is a pro forma financial statement in budgeting?

Beginner

Answer

A pro forma statement is a projected/forecast financial statement—the budgeted income statement, balance sheet, or cash flow—built from the budget rather than actual historical results. 'Pro forma' means 'as a matter of form', i.e., a formatted projection of expected results.
Real-world example The budget package includes pro forma income statement and balance sheet showing the expected year-end position.

Common follow-ups: What does 'pro forma' mean? | Which statements are pro forma in a master budget?

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All 34 The Master Budget questions