Briefly describe the principle of the build-up method and

Question

1. Explain why it is important to construct pro forma financial statements for new ventures.

2. What is the difference between the respective purposes of the balance sheet and the income statement?

3. Briefly describe the principle of the build-up method and its advantages.

4. What is the importance of building integrated financial statements?

5. The chapter says financial statements are obsolete immediately after they come off the printer. Why?

Answer 1

Be sure to read the questions carefully and provide answers for all financial management questions in the formatting of APA guidelines. Q1. Illustrate why it is significant to construct pro forma financial statements for latest ventures. Q2. Write down the difference between the respective aims of the balance sheet and the income statement? Q3. In brief illustrate the principle of the build-up method and its benefits. Q4. Determine the significance of building integrated financial statements? Q5. The chapter states financial statements are out of date instantly after they come off the printer. Explain why?