1) The common size income statement shows each income statement item as a percentage of

	a.	gross income
	b.	net income
	c.	gross sales
	d.	net sales

2) The debt to assets ratio

	a.	measures the percentage of assets that are financed
	b.	measures the percentage of assets that were paid for using S/E
	c.	shows the percentage of assets that are paid for
	d.	measures only current assets to current liabilities

2) What does, "trading on the equity," mean?

	a.	borrowing money at a lower rate and using it to make money at a higher rate
	b.	borrowing money at any rate and using it to make the same rate
	c.	borrowing money at a lower rate and using it to make money at the same rate
	d.	borrowing money at a higher rate and using it to make money at a lower rate