Final answer:
Pro forma statements do not show the firm's present financial position. They are used for financial planning and forecasting.
Step-by-step explanation:
The statement is False. Pro forma statements do not show the firm's present financial position. Instead, they show projected or anticipated financial statements based on specific assumptions or scenarios.
Pro forma statements are used for financial planning, forecasting, and decision-making. They are often created for events such as mergers and acquisitions, new product launches, or capital investments.
For example, a company may create pro forma financial statements to determine the potential financial impact of acquiring another company or launching a new product.