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Common-size statements a. Compare financial statements over time. b. Do not emphasize the relative magnitude of each item. c.The best way to study the relationship

Common-size statements

a.

Compare financial statements over time.

b.

Do not emphasize the relative magnitude of each item.

c.The best way to study the relationship of the components within a financial statement.

d.

Show the dollar amount of change for financial statement items.

d.

Consist of two or more balance sheets arranged side-by-side.

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