Common-Size Statements

question 53

Multiple Choice

Common-size statements:

• A)Reveal changes in the relative importance of each financial statement item to a base amount.
• B)Do not emphasize the relative importance of each item.
• C)Compare financial statements over time.
• D)Show the dollar amount of change for financial statement items.
• E)Reveal patterns in data across successive periods.

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Definitions:

Productivity

The measure of efficiency of a person, machine, factory, or system in converting inputs into useful outputs.

High-Performing

Describes individuals, teams, or organizations that consistently achieve outstanding results relative to their peers or objectives.

Low-Performing

Referring to an individual or entity that fails to meet expected or standard levels of productivity or achievement.

Friendly Competitive

A situation in which competitors interact in a positive and supportive manner while still striving to win.