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Judgmental approach

• A method for developing the pro forma balance sheet in which the values of certain balance sheet accounts are estimated while others are calculated, using the firm's external financing as a balancing, or plug, figure.

 
 Embedded terms in definition
 Balance sheet
Plug
 
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The game of life is to come up a winner, to be a success, or to achieve what we set out to do. Yet there is always the danger of failing as a human being. - Richard Milhouse Nixon

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