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Question

Common size analysis is also known as ______ analysis.

A
Horizontal
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B
Ratio
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C
Vertical
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D
Trend
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Solution

The correct option is C Vertical
Common size statement is a financial tool for studying the key changes and trends in the financial position and operational result of a company. common size analysis is also known as vertical analysis. Common size statements are useful, both, in inter-firm comparisons for the same year or for several years.

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