Why Do Financial Analysts Prepare Common Size Financial Statements

question 11

Multiple Choice

Why do financial analysts prepare common size financial statements?

• A)it is easier to work with financial statements when they are all in the same format
• B)they help the analyst identify changes over time in the proportion that each item of expense bears to the entity's total expenses
• C)they are a necessary first step in allowing the analyst to develop per capita information
• D)they show the dollar amount of change from one year to another for each item of expense,both for the entity studied and the reference group.

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Definitions:

Clozapine

An antipsychotic medication used primarily in the treatment of schizophrenia, particularly in individuals who have not responded to other medications.

Double Bind

A psychological predicament in which an individual receives two or more conflicting messages, and one message negates the other, making it difficult to appropriately respond.

Avolition

A lack of motivation or inability to initiate and persist in goal-directed activities, often seen in psychiatric disorders.

Atypical Antipsychotic Drugs

A class of medications used to treat psychiatric conditions, distinguished from earlier antipsychotics by their different chemical structure and lower risk of certain side effects.