Chapter 6 - Income Statement

Question 1

what is comparative (Horizontal) Income statement?

Answer 1

2 years of income statements along with changes in $ and %

Question 2

what is common-size (vertical) income statement?

Answer 2

2 years of income statements along with 2 years of % in each item (example; rooms revenue is 60% of total revenue)

Question 3

what is base-year comparison income statement?

Answer 3

Treat prior year as a base (100%) and shows everything in % compared to the base year