Which of the Following Is NOT True of Common Size

question 4

Multiple Choice

Which of the following is NOT true of common size statements?

• A) All balance sheet figures are expressed as a percentage of shareholders' equity.
• B) All figures in the income statement are expressed as a percentage of sales.
• C) Common size statements enable trends over time for a single company to be detected.
• D) Common size statements assist in comparing companies of different sizes.

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Definitions:

Incentives

Are extrinsic or intrinsic rewards or penalties for performing an action or refraining from one, motivating behavior change.

K-12 School Year

The educational period or academic years that include kindergarten through 12th grade in many countries, marking the compulsory stages of schooling.

Resources Are Scarce

The economic principle that the amounts of natural resources, goods, and services available are limited in relation to the desires and needs of people.

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The basic economic unit of a society, typically consisting of people living together in the same dwelling.