5 _______are decreases in economic benefits during the accounting period in the form of outflows or reductions in assets or increases in liabilities that result in decreases in equity, other than those relating to distributions to equity participants. a. Profit b. Expenses  c. Income d. None of the given options

Using common-size balance sheet percentages to project individual assets, liabilities, or shareholders' equity has all of the following shortcomings except:  a. Individual assets, liabilities, and shareholders' equity are independent of each other.     b. The common-size percentages do not permit the analyst to easily change the assumptions about the future behavior of an individual asset or liability.     c. Individual assets, liabilities, and shareholders' equity are not independent of each other.     d. If a company experiences changing proportions for investments in securities among its assets, other asset categories may show decreasing percentages in some years even though their dollar amounts are increasing.

29   Which of the following statements about revenues and expenses is correct?   Multiple Choice   Credits increase both revenues and expenses.   Credits increase expenses and decrease revenues.   Credits increase revenues and decrease expenses.   Credits decrease both revenues and expenses.

Which of the following is not a factor in producing earnings forecasts?  a) Estimating the level of dividends b) Separation of recurring and nonrecurring components c) Recognizing potential earnings management d) Recognizing potential income smoothing