Which of the following circumstances may lead to concern when analyzing a company's income statement over a three year period? I. A change in depreciation methods II. Reclassification of a selling expense from one account category to another III. A rise in salaries and wages expense in whole dollar terms while remaining constant on a percentage of sales basis IV. An increase in the amount of distributions paid to owners I\& III II \& IV I, II, \& III II, III \& IV.

1. Which of the following circumstances may lead to concern when analyzing a company's income
statement over a three year period? I. A change in depreciation methods II. Reclassification of a
selling expense from one account category to another III. A rise in salaries and wages expense in
whole dollar terms while remaining constant on a percentage of sales basis IV. An increase in the
amount of distributions paid to owners I& III II & IV I, II, & III II, III & IV