EQL209 1

Earnings Per Share describes a public company's profit per outstanding share of stock.

• True

• False

Analyzing the income statement helps in better decision making.

• True

• False

Investors can check the current financial status of a company by analyzing the financial statements.

• True

• False

The company, when it prepares the income statement, gets an idea of its financial standing.

• True

• False

Income statement helps in calculation of tax liability of a company.

• True

• False

There are ____ types of analysis of income statement.

• three

• two

Vertical analysis helps in comparing the performance of the company over the years.

• True

• False

Vertical analysis helps in comparing one company's financial status to another company.

• True

• False

Revenue of a company should be more than its expenses.

• True

• False

If the expenses of the company is increasing over the years, it is considered to be a _____ thing.

• bad

• good