An analytical tool for comparing two companies of different sizes is
A)common-size statements.
B)short-term liquidity.
C)financial leverage.
D)performance.

Name: An analytical tool for comparing two companies of different sizes is A)common-size statements. B)short-term liquidity. C)financial leverage. D)performance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common-size statements standardize financial statements by expressing the line items as percentages of a common base, making it easier to compare companies of different sizes.

An Analytical Tool for Comparing Two Companies of Different Sizes