In Which Comparative Financial Statements Is Each Amount Expressed as a Percentage

question 132

Multiple Choice

In which comparative financial statements is each amount expressed as a percentage of a base amount?

• A)Asset comparative statements
• B)Percentage comparative statements
• C)Common-size comparative statements
• D)Sales comparative statements
• E)General-purpose financial statements

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Definitions:

Cash Increase

The rise in the amount of cash and cash equivalents that a company has during a particular period, often resulting from operational activities, financing, or investments.

Statement of Cash Flows

A document that outlines the overall cash income from both the operational efforts and investment income of a company, and the expenditure on business activities and investment payments over a specified period.

Operating Activities

Activities related to the day-to-day functions of a business involved in producing and selling its products or services.

Indirect Method

A method used for the cash flow statement that starts with net income and adjusts for changes in account balances that affect available cash.