Asked by Thais De Charentenay on Apr 27, 2024
Verified
The amount of money that a small business owner needs to borrow is the difference between the pro forma assets and ______.
A) projected sales
B) projected expenses
C) owner's equity
D) project liabilities
Pro Forma Assets
Projected assets of a business, listed in a financial statement prepared in anticipation of future events or transactions.
Owner's Equity
The residual interest in the assets of an enterprise after deducting its liabilities, often referred to as net assets.
- Gain insight into the procedure for ascertaining initial capital requirements and the function of pro forma financial statements.
Verified Answer
CW
Caleb WeinmannApr 29, 2024
Final Answer :
C
Explanation :
The amount of money a small business owner needs to borrow is the difference between the pro forma assets and the owner's equity. This calculation helps determine the additional financing needed to support the business's operations and growth.
Learning Objectives
- Gain insight into the procedure for ascertaining initial capital requirements and the function of pro forma financial statements.