Which of the Following Statements Is Not Correct

question 15

Multiple Choice

Which of the following statements is not correct?

• A) The common-size analysis permits the analyst to compare and contrast the financial statements of two and more companies in the same industrial sector or risk class more easily.
• B) The common-size analysis reduces the problem of the size difference between companies.
• C) The common-size analysis helps the analyst formulate hypotheses about the most efficient business model between the firms compared,and identify possible thresholds in economies of scale.
• D) The common-size analysis allows only comparison over one year.

---

Definitions:

Phone Number

A sequence of digits used to call or identify a particular telephone line.

Caller

An individual who makes a telephone call, often used in contexts ranging from customer service to emergency response.

Referrals

Recommendations or orders to see a specialist or to utilize specific services.

Authorizations Department

A department within an organization or company that processes approvals for certain actions or transactions.