GENERAL KNOWLEDGE

Detailed explanation-1: -Explanation: The ratio is calculated with the help of historical and pro forma financial statements. The ratios interpret the financial postilion of the company in the market to its customers. The ratio analysis is done on the basis of debtors, creditors, assets, and many more.

Detailed explanation-2: -A pro forma financial statement leverages hypothetical data or assumptions about future values to project performance over a period that hasn’t yet occurred. In the online course Financial Accounting, pro forma financial statements are defined as “financial statements forecasted for future periods.

Detailed explanation-3: -Explanation: The pro forma financial statements are considered as the heart of the financial section of the business plan. The pro forma financial statements are prepared based on assumptions and projections of past activities that may happen in the future.

Detailed explanation-4: -Pro Forma Income Statements for a Business Plan Pro forma statements for a business plan can take many different forms, but they all typically include information on sales forecasts, expenses, capital expenditure plans, and funding requirements.

Detailed explanation-5: -The executive summary the most important part of your business plan, and perhaps the only one that will get read so make it perfect! The executive summary has only one objective : get the investor to read the rest of your business plan.