Indicate Whether Each of the Following Statements About Financial Statement

question 109

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a)A common size income statement is prepared by converting each component to a percentage of net income.
_____ b)Common size financial statements are a form of vertical analysis,but the common size statements for two or more years may usefully be compared.
_____ c)Vertical analysis of a balance sheet involves converting each component to a percentage of stockholders' equity.
_____ d)Small percentage changes resulting from vertical analysis may still represent large dollar amounts;therefore,changes in both absolute dollar amounts and percentages should be examined.
_____ e)Vertical analysis of a company's balance sheet is useful in assessing its liquidity.

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Definitions:

Transsexuals

Individuals who undergo medical and surgical interventions to alter their anatomical sex to match their gender identity.

Transgender People

Refers to individuals whose gender identity differs from the sex they were assigned at birth.

Asexual

A term relating to a lack of sexual attraction to others, or low or absent interest in or desire for sexual activity.

Glass Ceiling

An invisible barrier that prevents minorities and women from rising beyond a certain level in a hierarchy.