Question

In: Finance

You see that over a ten-year period your expenses have increased as a percentage of income...

You see that over a ten-year period your expenses have increased as a percentage of income and your discretionary income has declined. You would see this by comparing

common-size income statements.

common-size cash flow statements.

common-size balance sheets.

ratio analyses.

debt to asset ratios.

Solutions

Expert Solution

Comparing line items to either revenue in income statement or asset in balance sheet is called Common size percentage. Expenses and discretionary income are all line items on an income statement.

Answer is Common-size income statements.


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