Which of the Following Would Be Most Helpful in the Comparison

question 9

Multiple Choice

Which of the following would be most helpful in the comparison of different size companies?

• A)Horizontal analysis
• B)Comparison of their net incomes
• C)Comparison of their working capital balances
• D)Preparation of common-size financial statements

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Definitions:

Conservation

The act of preserving, protecting, or restoring natural environments, artifacts, and cultural heritages from deterioration or destruction.

Animism

Tendency to attribute life to objects that are not alive.

Inductive Reasoning

A method of reasoning in which specific observations or experiences are used to make general conclusions.

Decentration

The cognitive ability to consider multiple aspects of a situation rather than focusing on a single standpoint.