EQL209 2

Analyzing the income statement is only beneficial for the investors.

• True

• False

Analyzing the income statement helps the management plan for the future activities.

• True

• False

By analyzing the income statement, businesses can find out if they should shut out any product line.

• True

• False

Competitors also keep an eye on the income statement of the companies in the same industry.

• True

• False

_____ check the income statement of a company and spend on research and development accordingly.

• Investors

• Competitors

Investors can check the revenue and expenses of a company and decide to invest or not to invest in it.

• True

• False

Investors can also do vertical analysis and find out the best company to invest in.

• True

• False

Creditors are interested to know the profits of a company.

• True

• False

Research analysts checks the performance of the company from year-to-year.

• True

• False

Income statement do not provide valuable insights.

• True

• False