What Is Analysed by Common Size Analysis

question 1

Multiple Choice

What is analysed by common size analysis?

• A)Breakdown of the total revenue over differing business segments to enable comparison between those segments.
• B)The performance of other firms in the same industry adjusted for size of the firm
• C)Comparing the firms performance to its own history
• D)Performance of firms of similar size in differing industries

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Definitions:

Real Assets

Tangible, physical assets such as real estate, commodities, and natural resources, which have intrinsic value due to their substance and physical properties.

Common Stock

Represents ownership shares in a corporation, giving holders a claim on part of the company's profits and assets.

Flow of Funds Accounts

Financial accounts that track the flow of money among various sectors within an economy, helping to analyze financial markets and monetary movements.

Liabilities

Financial obligations or debts that a company or individual owes, which are recorded on the right side of the balance sheet.