In a period of rising sales, utilizing past cost and expense ...

[jace]

In a period of rising sales, utilizing past cost and expense ratios (percent-of-sales method) when preparing pro forma financial statements will tend to ________.
 
  A) overstate costs and overstate profits
  B) overstate costs and understate profits
  C) understate costs and overstate profits
  D) understate costs and understate profits

Question 2

Investor complaints against brokers are primarily handled through
 
  A)
 
  binding arbitration.
  B)
 
  the federal court system.
  C)
 
  the state court system.
  D)
 
  the Federal Reserve system.

[cam1229]

Answer to Question 1

B

Answer to Question 2

A

[jace]

Excellent

[sarah_brady415]

Gracias!