A Financial Statement Showing Each Item on the Statement as a Percentage

question 105

Multiple Choice

A financial statement showing each item on the statement as a percentage of one key item on the statement, called the base, is referred to as:

• A)common-size statement.
• B)trend analysis.
• C)horizontal analysis.
• D)benchmarking.

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Definitions:

Income from Operations

The earnings of a company from its core business operations, excluding income from other sources and expenses like taxes.

Return on Assets Ratio

A measure of profitability that indicates how efficiently a company is using its assets to generate earnings.

Chief Financial Officer

The Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company, overseeing financial planning, and reporting on financial performance.