Which of the following characteristics of prospective financial statements would require the practitioner to include in a report on the prospective financial statements an alert that restricts the use and distribution of the report?

a) They are considered a financial projection.
b) They are considered a financial forecast.
c) They contain a range of forecasted results.
d) They are prepared by a practitioner who lacks independence.

In this case,the answer would be option b) or They are considered as financial forecast.

Explanation:

Any prospective financial statements is a highly important and confidential document for any legitimate business organization  and should be prevented from being disclosed, especially to any external sources.Therefore, it s treated or considered as only a general financial document especially when dealing with any party or individual with whom the concerned company or organization is not directly dealing with.Hence, only an official financial reporting containing an overall financial forecast is sufficient for general use of the report with any related or unrelated party or individual.