One reason that a common-sized statement is a useful tool in financial analysis is that it enables the user to (A) determine whi
ch companies in a single industry are of the same value(B) judge the relative potential of two companies of similar size in different industries (C) make a better comparison of two companies of different sizes in the same industry (D) determine which companies in a single industry are of the same size
One reason that a common-sized statement is a useful tool in financial analysis is that it enables the user to
Answer ) option a
that is to make a better comparison of two companies of different sizes in the same industry
Just like Apple and Samsung both are different companies and have different size but are from same industry that is smart phones now a common-sized statement can be used comparison of these two companies.
The correct answer is letter "C": make a better comparison of two companies of different sizes in the same industry.
Explanation:
Common-sized statements portrait revenue sales as percentages in charts. As the scheme is simple, it is helpful to analyze the firm's performance over different periods and related-industry organization's performances. Investors can use common size income statements also to analyze how various components affect the company's profits and financial position.
One of the biggest reason for poverty is unemployment and this leads to lower purchasing power of the people of Novia. If Novia wants to increase the living standard of people through wealth creation then the country must invest on developing Entrepreneur ecosystem and giving tax incentives so that the international firms would invest in Novia. This would help in jobs creation and the exports of these firm will help in saving costs of borrowing for balance of payments.