Indicate Whether Each of the Following Statements About Financial Statement

True/False

Indicate whether each of the following statements about financial statement analysis is true or false.________ a)Vertical analysis of a company's balance sheet is useful in assessing its liquidity.________ b)Common size financial statements are a form of vertical analysis, but the common size statements for two or more years may usefully be compared.________ c)Vertical analysis of a balance sheet involves converting each component to a percentage of stockholders' equity.________ d)Small percentage changes resulting from vertical analysis may still represent large dollar amounts; therefore, changes in both absolute dollar amounts and percentages should be examined.________ e)A common size income statement is prepared by converting each component to a percentage of net income.