What is the relationship or connection between a company's pro forma financial statements and the end-of-period financial statements reported to stockholders and other external users?
What will be an ideal response?
Answers will vary
Pro forma financial statements are based on budgets, while the end-of-period financial statements are based on actual results of operations. The pro forma financial statements should be prepared in similar format with the end-of-period financial statements, to facilitate comparisons between budgeted results and actual results.
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