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:

Portrayal

The way in which a person, event, or situation is described or shown in literature, film, or other media.

High Response Rate

A situation where a large percentage of individuals in a given group or sample respond to a survey or participate in a study.

Pilot Study

A small-scale preliminary study conducted to evaluate feasibility, time, cost, risk, and adverse events before proceeding to a full-scale research project.

Survey Validity

Refers to the degree to which a survey measures what it is intended to measure.