question archive Which of the following transaction costs will not be included in the pro-forma adjustment to net earnings? Debt refinancing premium Other transaction costs Equity financing fees Amortization of debt financing fees
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Which of the following transaction costs will not be included in the pro-forma adjustment to net earnings?
Debt refinancing premium
Other transaction costs
Equity financing fees
Amortization of debt financing fees
ANSWER
D.Amortization of debt financing fees
In financial accounting, pro forma refers to a report of the company's earnings that excludes unusual or nonrecurring transactions. Excluded expenses could include declining investment values, restructuring costs, and adjustments made on the company’s balance sheet that fix accounting errors from prior years.