Question

Enrico is assessing the financial statements of two companies. The first company is in the introductory phase, whereas the second company is in the decline phase. What can Enrico expect to find related to long-term assets on the comparative balance sheet?

Answer 1

Answer: If the first company is in the introductory phase, and the second company is in the decline phase, in the comparative balance sheet Enrico can find that in the company that is in the introductory phase the balance of long-term assets increases from year to year. year while in the company that is in the phase the balance of long-term assets decreases from year to year.