One Reason That a Common-Size Statement Is a Useful Tool

Multiple Choice

One reason that a common-size statement is a useful tool in financial performance evaluation is that it enables the user to

A) make better comparisons of two companies of different sizes in the same industry.
B) determine which companies in a single industry are of the same size.
C) judge the relative potential of two companies of similar size in different industries.
D) determine which companies in a single industry are of the same value.