Which of the following is true of common-size income statements?

Question 10 options:

	Each income statement item is dividend by sales.
	A common-size comparison results in more dissimilarities than when comparing on a dollar basis.
	All of the above are income statement items
	Common size income statements cant be used to compare firms of different size.
	Income statement accounts are presented as a percentage of total assets.

For a technology dependent firm, a past trend is a good predictor of future trends when:

Question 12 options:

	All of the above statements are true.
	The past trends are similar to industry past trends.
	The drivers of past firm performance will be unchanged over the forecast period.
	When there is considerable uncertainty about the industry outlook.