- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 8. Analysis of the Income Statement
CFA Practice Question
Bridget's Midget Widget has the following records for 1995 - 1998:
Gross margin has ______
A. stayed the same, with rising sales offset by decreasing cost of goods sold.
B. increased as a percentage of sales.
C. decreased as a percentage of sales.
User Contributed Comments 21
| User | Comment |
|---|---|
| tssverma | well can anyone explain that a series 35/100, 31/95, 28/91 , 26/88 is increasing or decreasing ratio every year. My option is C. |
| tengo | You made the same mistake as I did , the dates are reversed from the normal trend 1998 to 1995 not 1995 to 1998 as you would normally assume |
| Gnomez | I did that too - got to pay attention |
| Peter | Damn, one easy question and I make the same stupid mistake! |
| julamo | same here! We got so much stuff to keep in mind, you'd never think about a trick like this! |
| adeelj | Damn!!! What a sleazy way of trickery!! Same mistake all throughout! |
| whoi | remember: US Statements normally function that way!!! |
| hannovanwyk | made the exact same mistake...sigh |
| jainrajeshv | Me too!!!! too much |
| Andrewua | it's really tricky.... |
| panvino | Me too...!!! |
| vavoev | Oh, damn, i did too. |
| serboc | I TOOK THE REAL TEST LAST DEC AND THEY DO DO THIS *** BEWARE **** |
| Boiler5 | I fell for it as well! ***shakes fist*** |
| serboc | THEY DO THIS ON TEST!!! |
| JCopeland | I'm a dwarf and I find this question offensive. |
| JCopeland | Just kidding, on both counts. |
| jnptrsn1 | My eyebrows.... they're furrowing... |
| cfastudypl | Good question to draw ones attention to dates. |
| RahuLmal | Nice question |
| Znanje35 | Aww shucks they tricked me too!!! Arghhhh |