Financial planning and forecasting is one of the most important aspects of operating a successful business. Which of the following statements about financial planning and forecasting is FALSE?

a) Pro forma financial statements are projected financial statements that are based on estimates of future operating and financial data, as well as on external factors.

b) Good business planning requires a highly standardized approach that should be adopted by all firms.

c) Pro forma statements can be used to test the financial plan for sensitivity to specific future events and decisions, and then to start establishing priorities.

d) An important role of the financial plan is to determine what financial resources are needed to meet existing obligations as they fall due and to finance future business development.