One Reason That a Common-Size Statement Is a Useful Tool

question 119

Multiple Choice

One reason that a common-size statement is a useful tool in financial analysis is that it enables the user to

• A) judge the relative potential of two companies of similar size in different industries.
• B) determine which companies in a single industry are of the same value.
• C) determine which companies in a single industry are of the same size.
• D) make a better comparison of two companies of different sizes in the same industry.

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Definitions:

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