When a company is growing overall,it is not difficult to tell from the dollar amounts whether the proportions within each financial statement category are changing.

Question

Quizplus · Accepted Answer

Even when a company is growing overall, changes in the proportions within each financial statement category may not be immediately apparent from the dollar amounts alone. Analyzing ratios or percentages is often necessary to identify shifts in the composition of revenues, expenses, assets, liabilities, or equity.

When a Company Is Growing Overall,it Is Not Difficult to Tell