Question: Common-size analysis is used in financial analysis to a. Evaluate changes in a companys operating cycle over time. b. Predict changes in a companys capital

Common-size analysis is used in financial analysis to

a. Evaluate changes in a company’s operating cycle over time.

b. Predict changes in a company’s 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 company’s financial statement as a proportion of the similar account for another company in the same industry.


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