Stock splits do not impact the value of the share capital or retained earnings accounts. 1) True 2) False When preparing common-size analysis of a statement of income, the base is normally 1) Operating expenses. 2) Revenues. 3) Net income. 4) Cost of goods sold. The auditor's report confirms that 1) the information contained in the auditor's report is negative information. 2) the auditor has qualifications to make on the information. 3) the financial statements are error free. 4) the statements present fairly the financial condition of a company. The current ratio is an activity ratio