Common size financial statements make it easier to compare firms ____________.

of different sizes

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in different industries

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with different degree of leverage

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that use different inventory valuation methods (FIFO Vs. LIFO)

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Solution

The correct option is A of different sizes
Common size financial statements make it easier to compare firms of different sizes as they show all items as percentages and not in absolute figures which provides better comparison.

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Common size financial statements make it easier to compare firms ____________.

The correct option is A of different sizesCommon size financial statements make it easier to compare firms of different sizes as they show all items as percentages and not in absolute figures which provides better comparison.

The correct option is A of different sizes
Common size financial statements make it easier to compare firms of different sizes as they show all items as percentages and not in absolute figures which provides better comparison.