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A simple method for developing a pro forma income statement is: a FIFO method b Percent...

A simple method for developing a pro forma income statement is:

a

FIFO method
b

Percent of sales method
c

LIFO method
d

GAAP method
business   accounting   
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Answer #1

Correct answer….(b) Percent of sales method

.

Percent of sales method is a very simple method of Preparing pro forma income statement. LIFO and FIFO Our methods of valuating inventory not for preparing  pro forma income statement.
GAAP is not a method. It is generally accepted accounting principles which are used to prepare financial statements in the United States.

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