Consider a comparative Income Statement for a particular company, results are being presented for two consecutive years. You are reviewing these results, and you notice the following about the comparative results: The comparative revenues (all revenues) increased. The comparative expenses (all expenses) increased. The comparative Net Income decreased. What do these observations tell you about the relative change in revenues vs. expenses over the two-year period?
Consider a comparative Income Statement for a particular company, results are being presented for two consecutive years. You are reviewing these results, and you notice the following about the comparative results: The comparative revenues (all revenues) increased. The comparative expenses (all expenses) increased. The comparative Net Income decreased. What do these observations tell you about the relative change in revenues vs. expenses over the two-year period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Consider a comparative Income Statement for a particular company, where the company's
results are being presented for two consecutive years. You are reviewing these results, and you
notice the following about the comparative results:
The comparative revenues (all revenues) increased.
The comparative expenses (all expenses) increased.
The comparative Net Income decreased.
What do these observations tell you about the relative change in revenues vs. expenses over the
two-year period?
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