Indicate Whether Each of the Following Statements Is True or False

question 73

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)A common size income statement facilitates comparison between two or more companies of different size and in the same industry.
_____ b)A common size income statement is prepared by dividing the various amounts reported on the income statement by the amount of total assets.
_____ c)A common size income statement is helpful in comparing the results of operations in different time periods.
_____ d)The gross margin percentage is computed by dividing gross margin by net income.
_____ e)Return on sales is computed by dividing net income by net sales.

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Definitions:

Complex Solutions

Strategy or answers to problems that are multifaceted and require multifarious approaches for resolution.

Deviation-Amplifying Feedback

A process in systems whereby deviations or changes are amplified rather than corrected, leading to significant changes or transformations.

Multiple

Characterized by having or involving several parts, elements, or members.

Competing

Engaging in an effort to win or outperform others in a particular activity or field.