BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Pro forma financial statements are projections of future expenses and revenues, based on a company’s past experience and future plans.

Detailed explanation-2: -Financial projections are built on a set of assumptions, and can be built from scratch for a startup company. Pro Forma financial statements on the other hand are based on your current financial statements, and then are changed based on one event.

Detailed explanation-3: -In the online course Financial Accounting, pro forma financial statements are defined as “financial statements forecasted for future periods. They may also be referred to as a financial forecast or financial projection.”

Detailed explanation-4: -What are Projected Financial Statements? Projected financial statements incorporate current trends and expectations to arrive at a financial picture that management believes it can attain as of a future date. At a minimum, projected financial statements will show a summary-level income statement and balance sheet.

Detailed explanation-5: -Budgeted financial statements are also known as pro forma statements. Different assumptions and scenarios are considered while preparing the pro form statements, and the effect of each possible outcome on the financial statements is measured.