Question: Financial statement users should focus attention on each item showing a large percentage change from one year to the next. Is this statement correct? Why?

Financial statement users should focus attention on each item showing a large percentage change from one year to the next." Is this statement correct? Why?

What are common-size financial statements and how are they used?

What item is the key figure (that is, 100 percent) in a common-size income statement? A common-size balance sheet?

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