1. When creating a pro Forma statement, the changes in the liabilities and owners equity sections depend primarily on the firms?

Financing policies

Interest rates and financing policies

Dividend and financing policies

Retained earnings policy

Rate of sales growth2. The owners of a limited liability company prefer

2. Being taxed like a corporation

Have liability exposure similar to that of a sole proprietor

Being taxed personally on all business income

Have liability exposure similar to that of a general partner

Being taxed like a corporation with liability like a partnership