An Analytical Tool for Comparing Two Companies of Different Sizes

question 112

Multiple Choice

An analytical tool for comparing two companies of different sizes is

• A) common size statements
• B) short-term liquidity
• C) financial leverage
• D) Annual reports

---

Definitions:

Taxes in The U.S.

Various compulsory financial charges imposed by the government on individuals and organizations to fund public expenditures.

Proportional

Characterized by a constant relationship in degree or number between two variables.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of tax paid by the total income.

Personal Income

The total amount of income earned by individuals from all sources, including wages, dividends, and interest, before taxes.