Which of the following are reasons to generate a proform a

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Reference no: EM13614738

1. Which of the following is the correct sequence of events?

A)Performa balance sheet, cash budget, proforma income statement.

B)Proforma balance sheet, proforma income statement, cash budget

C)Proforma income statement, cash budget, proforma balance sheet

D)None of the above

2. Which of the following are reasons to generate a proformacash budget on abnormal basis?

A)A business can monitor the actual cash on hand

B)Sales are recognized as income when the sale is made

C)An income statement indicates a profit but the budget may indicatea loss

D)All of the above

3. Which of the following is a cash payment?

A)Inventory purchases

B)Labor costs

C)Operating expenses

D)All of the above

Reference no: EM13614738

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