When combining common-size and common-base year analysis, the effect of overall growth in assets can be eliminated by first forming the <u>common size statements.</u>
<h3>What is a common size statement?</h3>
An income statement with each line item expressed as a percentage of revenue or sales is referred to as a common size income statement. The usual size percentages assist in demonstrating the impact of each line item or component on the company's financial status.
Items are shown as a percentage of a common base amount, such as total sales revenue, in a financial statement of common size. This kind of financial statement makes it simple to compare one company to another or different time periods within the same company. You need to make some sort of size adjustment in order to compare those two businesses. Common-size financial statements are used for this.
Therefore, common size statement can eliminate the effect of overall growth in assets.
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Answer:
Falling moral standards in Ghanaian youth
Explanation:
Answer: Parliamentary republic.
Explanation: Three-tier system of government and an independent judiciary.
Answer:
b. inflation
Explanation:
Inflation is an increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices.It may be caused by an increase in the volumed of paper money issued or of gold mined,or a relative increase in expenditures as when the supply of goods fails to meet the demand. Inflation occurs when general level of prices and cost are rising.
As in the given scenario, the citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. At the same time, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP. Based on the scenario, <u>inflation</u> is most affected by the situation taking place within Country D.
