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

question 114

Multiple Choice

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

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

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Definitions:

State-Dependent Memory

The phenomenon where information learned in a particular state of mind (e.g., happiness, sadness) is more easily recalled when in the same state.

Working Memory

A cognitive system responsible for temporarily holding and processing information necessary for complex tasks such as learning, reasoning, and comprehension.

Mental Rotation

The cognitive process of rotating mental representations of two-dimensional and three-dimensional objects.

Visuospatial Planning

The ability to visualize and manipulate objects in space during planning and execution of tasks.