Common-size statements show the size of each item relative to a common denominator. True False Question 12 (1 point) Which of the following assets reduces expenses but does not increase income or store wealth? Home Land Car Money market account Savings account Question 13 (1 point) A budget surplus most likely would enable you to do all the following EXCEPT increase expenses. save. A common-size income statement shows each of your expenses as a percentage of your income. True False Question 15 (1 point) The benefit of debt is that you can use money later rather than now. defer payment of interest. own an asset before paying for it. use it to store wealth. use your own money. Question 16 (1 point) The result shown on a cash flow statement is a summary of the sources and uses of actual cash flows over a period of time. True False To calculate your cash flow to income ratio (how much payments for investing and financing take from income), you would divide your net cash flow by your free cash flow. interest expense. net income. net worth. total assets. Question 18 (1 point) Cash flows from financing are recurring and include expenses and incomes from daily living. True False Question 19 (1 point) When you buy or borrow liquidity or cash, you become a buyer in the capital market. True False The best way to diversify sources of income is to sell both your labor and your capital. True False