1. The pro forma income statement gives managers an advance estimate of a company's profitability.

true or false

2. Pro forma financial statements are prepared at the end of the year and are used to evaluate the performance of managers.

true or false

3. The marketing department is primarily responsible for establishing the sales forecast. true or false

4. If a financial statement is labeled "pro forma" this means that the statement was prepared by a professional accountant (usually the firm's auditor) following a prescribed format.

True

False

5. Vector Company seeks input from salespeople regarding the number of units they believe they can sell during the upcoming budget period. This is an example of participative budgeting. true or false

6. One advantage of participatory budgeting is that it frees up upper management for more important tasks.

true or false

7.Janice was questioned recently about her department's spending in excess of the budget. This is an example of using the budget for performance measurement. true or false

8. Strategic planning deals with the establishment of a long term company objectives. true or false