- CFA Exams
- 2021 CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 24. Financial Analysis Techniques
- Subject 1. Analysis Tools and Techniques
CFA Practice Question
A trend statement reveals a firm's gross margin percentage for each year presented. True or False?
Correct Answer: False
A common-size statement reveals this comparison, as all components of the income statement are presented as a percentage of sales. A trend statement recasts financial statement items in percentage terms in comparison with a base year (rather than net sales or total assets).
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