One Reason That a Common-Sized Statement Is a Useful Tool

question 12

Multiple Choice

One reason that a common-sized statement is a useful tool in financial analysis is that it enables the user to

• A) judge the relative potential of two companies of similar size in different industries
• B) determine which companies in a single industry are of the same value
• C) determine which companies in a single industry are of the same size
• D) make a better comparison of two companies of different sizes in the same industry

---

Definitions:

Untrue Information

Refers to data or statements that are false or incorrect, often spread to deceive or mislead.

Cyber Libel

The act of publishing false and defamatory statements about an individual or organization on the internet, which can harm reputations and lead to legal action.

False Light

Refers to information either untrue or suggestive of false impressions that is widely publicized.

FTC Requirement

Regulations set forth by the Federal Trade Commission, which governs the conduct of business practices to ensure fair competition and the protection of consumers.