Common size statement is a ________ for studying the key changes and trends in the financial position and operational result of a company.

Financial tool

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Government tool

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Analysed tool

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Managerial tool

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Solution

The correct option is A Financial tool
A common size financial statement displays all items as percentage of a common base figure. It is a financial tool for studying the key changes and trends in financial position and operational result of a company. Common size statement indicates the relationship of different items of a financial statement with some common item by expressing each item as a percentage of a common item.

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