Question: 4. Which statement is most accurate? A common size income statement: A. restates each line item of the income statement as a percentage of net

4. Which statement is most accurate? A common size income statement:

A. restates each line item of the income statement as a percentage of net income.

B. allows an analyst to conduct cross-sectional analysis by removing the effect of company size.

C. standardizes each line item of the income statement but fails to help an analyst identify differences in companies’ strategies.

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