Common-size analysis is used in financial analysis toa. Evaluate chang
QUESTION
Common-size analysis is used in financial analysis toa. Evaluate changes in a companys operating cycle over time.b. Predict changes in a companys capital structure using regression analysis.c. Compare companies of different sizes or compare a company with itself over time.d. Restate each element in a companys financial statement as a proportion of the similar account for another company in the same industry.
Answer: c. Compare companies of different sizes or compare a company with itself over time Explanation : common size analysis involves calculating all the items of a financial statement in form of percentage by taking a common base¦
figure. This can be done for all 3 financial statements. This helps to compare the companys performance over time as well as with other companies.
ANSWER:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.