What is the main purpose of common-size financial statements? a)To facilitate comparisons over time b)To facilitate comparison between different-sized firms c) To facilitate comparison between firms of different structure d) To remove the bias introduced by increasing revenue
What is the main purpose of common-size financial statements? a)To facilitate comparisons over time b)To facilitate comparison between different-sized firms c) To facilitate comparison between firms of different structure d) To remove the bias introduced by increasing revenue
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter4: Profitability Analysis
Section: Chapter Questions
Problem 1QE: Common-Size Analysis. Common-size analysis is a simple way to make financial statements of different...
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What is the main purpose of common-size financial statements?
a)To facilitate comparisons over time
b)To facilitate comparison between different-sized firms
c) To facilitate comparison between firms of different structure
d) To remove the bias introduced by increasing revenue
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