TeachMeFinance.com - explain Pro forma
Pro forma -- For the sake of form ; the term is frequently
used in mercantile business.
A pro forma account is a specimen statement showing what
it is considered, in the current state of the market, goods
would realize. Such an account is in the same form as one
used in an actual transaction except that the prices are tentative are examples merely. The purpose of a pro forma account
is to furnish to the one to whom it is rendered or sent
the value or cost of a consignment or shipment of goods in the
existing state of the market.
A pro forma account sales is asked for by a prospective
seller of goods on consignment (consignor) when he desires
to know what sum goods which he has for disposal would
A pro forma invoice is asked for by a prospective purchaser
who desires to obtain from the seller prices and charges on
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