Question 7 (17 points) What do common size statements tell you (pick all that are true): Demonstrates which accounts are most significant to a firm (in the pursuit of profits). Provides a basis of comparison for the firm over time. Illustrates the portion of revenue left after expenses as well as the relative portion of those expenses. Shows the relative size of the major sources of financing. Allows for a comparison to other firms, especially for different size firms. It gives a breakdown of major resources (assets) for a firm. Select all that are true regarding financial statement trends: The sales trend drives the trend in assets. The sales trend drives the trend in expenses. Increasing trends in assets causes an increase in financing (debt \& equity). Trends can be used to see anomalies in the firm over time. Trends will persist into the future. Downward trends always lower profit. Trends show growth or decay of parts of the firm. Trends can NOT be compared to other firms