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Why is the common-size income statement valuable to the analyst? The common-size income statement allows the analyst to compare the firm to itself from year-to-year,
Why is the common-size income statement valuable to the analyst?
The common-size income statement allows the analyst to compare the firm to itself from year-to-year, but not to its competitors.
The common-size income statement shows the relative magnitude of revenues and expenses relative to profits.
The common-size income statement shows the relative magnitude of expenses relative to net sales.
The common-size income statement shows the relative magnitude of revenues and expenses to total assets.
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