Question

Pro forma financial information: a. Is always presented on a generally accepted accounting principles (GAAP) basis b. Is illegal c. Usually focuses on pro forma earnings, usually on a non-GAAP basis d. Is found in the statement of stockholders equity

Answer 1

Answer:

The correct answer is letter "C": Usually focuses on pro forma earnings, usually on a non-GAAP basis.

Explanation:

Pro forma is primarily used in the preparation of financial statements written by accountants. In accounting, pro forma financial statements are used to display the company's financial performance, except non-recurring extraordinary events that arise during the year, including losses or gains. Pro forma financials do not follow Generally Accepted Accounting Principles (GAAP).