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 analysis is that it enables the user to

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