Question

What is the information that requires footnotes in a pro forma?

1) Financial statements
2) Legal disclaimers
3) Technical specifications
4) Historical data

Answer 1

In a pro forma, footnotes may be used for financial statements, legal disclaimers, and historical data.

Step-by-step explanation:

In a pro forma, the information that typically requires footnotes includes:

1. Financial statements: Footnotes may be used to provide additional details about the numbers presented in the financial statements, such as assumptions, estimates, or explanations of accounting policies.
2. Legal disclaimers: Footnotes may be used to disclose legal information or disclaimers related to the pro forma, such as risks or limitations.
3. Historical data: Footnotes may be used to explain the source and reliability of the historical data used in preparing the pro forma, ensuring transparency and credibility.