Which of the Following Would Be Most Helpful in the Comparison

question 103

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:

GDP

The total market or monetary worth of all completed goods and services produced inside a nation's boundaries over a certain period is known as the Gross Domestic Product.

GDP Deflator

A measure of the price level for all new, domestically produced, final goods and services in an economy, used to convert nominal GDP into real GDP.

Base Year

A specific year against which economic growth or other economic variables are measured.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured using current prices without adjustment for inflation.