Section A

$1-$Choose the correct answer $(2/.)$

$1-$ A common$-$size income statement is an accounting statement that express all of a firm's expenses as percentage of

a$-$ Asset

b$-$ Equity

c$-$ Net income

d$-$ Sales

$2-$ Which of the following balance sheet equations is INCORRECT?

a$-$ Asset $-$ Liabilities $=$ Shareholders' Equity

b$-$ Asset $=$ Liabilities $+$ Shareholders' Equity

c$-$ Asset $-$ Current Liabilities $=$ long term Liabilities

d$-$ Asset $-$ Current Liabilities $=$ long term Liabilities Shareholders' Equity

$3-$ Which of the following is an example of an intangible asset?

a$-$Brand names and trademark

b$-$Patents

c$-$ Customer goodwill

d$-$ All of the above

$4$ is more like a video of the firm's operations for a specified period of time

a$-$ Balance sheet

b$-$Income statement

c$-$ Cash flow statement

d$-$None of the above

Discuss $2$ of the potential problems with ratio analysis. $(2/.)$