Which of the Following Statements Are True? I

question 29

Multiple Choice

Which of the following statements are true? i. ii. iii.

• A) i only
• B) ii only
• C) i and ii only
• D) i and iii only
• E) iii only

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Definitions:

Common Size Analysis

A financial analysis technique that expresses each line item on a financial statement as a percentage of a base figure to allow for comparison.

Financial Statement

A written record detailing the financial activities and condition of a business, including balance sheet, income statement, and cash flow statement.

Base Amount

A reference value or level in financial calculations, often serving as a benchmark for comparing financial performance or changes.

Horizontal Analysis

A technique for evaluating a series of financial statement data over a period of time, to determine the increase (decrease) that has taken place, expressed as either an amount or a percentage.