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What do financial managers look for when they analyze pro forma financial statements?
After the pro forma financial statements are finished, financial managers examine the forecast to determine
(1) what present trends suggest what will happen to the firm in the future.
(2) what effect management's current budgets and plans will have on the firm.
(3) what actions to take to evade problems revealed in the pro forma statements.
A bond whose payments are made in foreign currency has unknown cash flows in domestic currency. This is because the cash flows are dependent on the exchange rate
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Account balance - Inherent risk At account balance / class of transaction level Balances susceptible to misstatement. History of errors. Complexity of transac
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What is the Discount and Premium? Describe please.
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