What Are Pro-Forma Earnings? Pro-forma earnings most often refer to earnings that exclude certain costs that a company believes result in a distorted picture of its true profitability. Pro-forma earnings are not in compliance with standard GAAP methods and are usually higher than those that comply with GAAP. The term may also refer to projected
What Is a Pro-Forma Forecast? A pro-forma forecast is a financial forecast based on pro-forma income statements, balance sheets, and cash flow statements. Pro-forma forecasts are usually created from pro-forma financial statements and are forecasted using basic forecasting procedures. When making these forecasts, revenues will usually provide the initial groundwork for the forecast, and expenses
What Is a Pro Forma Invoice? A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. It will typically describe the purchased items and other important information, such as the shipping weight and transport charges. Key Takeaways Pro forma invoices are sent to buyers ahead
What Are Progress Billings? Progress billings are invoices requesting payment for work completed to date. Progress billings are prepared and submitted for payment at different stages in the process of a major project. This type of billing is common in projects that last a long time. It allows the person billing—usually a contractor—to fund the
What Is a Progressive Tax? A progressive tax involves a tax rate that increases (or progresses) as taxable income increases. It imposes a lower tax rate on low-income earners and a higher tax rate on those with a higher income. This is usually achieved by creating tax brackets that group taxpayers by income ranges. The
What Is Project Completion Restriction? A project completion restriction is a clause often found in municipal bond indentures that requires the issuing party to sell additional debt securities (typically revenue bonds) to finance the full completion of a project. In general, a municipal bond issuer repays a lender by using revenue that results from a
What Is Project Management? Project management involves the planning and organization of a company’s resources to move a specific task, event, or duty towards completion. It can involve a one-time project or an ongoing activity, and resources managed include personnel, finances, technology, and intellectual property. Project management is often associated with fields in engineering and
What Are Project Notes? Project notes are short-term debt obligations issued to finance a project or endeavor past a specified milestone, or to fund multiple small projects on a short-term basis. Project notes are often used by municipalities to fund urban renewal programs and are guaranteed by the U.S Department of Housing and Urban Development.
What Is a Promotion? Promotion refers to a variety of actions intended to raise greater awareness or advancement of an item. In terms of a career, promotion refers to advancing an employee’s rank or position in a hierarchical structure. In marketing, promotion refers to increasing intention on a product through advertising or a discounted price.
What Is a Promotional Certificate of Deposit (CD) Rate? A promotional certificate of deposit (CD) rate, also referred to as a bonus CD rate, is a higher-than-normal rate of return on a CD offered by banks and credit unions to attract new deposits. Often this promotional rate is limited to certain deposit amounts or for
