Which of the Following Is an Advantage of a Common-Size

Multiple Choice

Which of the following is an advantage of a common-size income statement?

A) It is very useful to assess how effectively a firm collected its accounts receivable.
B) It reveals a great deal of information about the adequacy of a firm's net working capital.
C) It can tell the analyst a great deal about a firm's efficiency and profitability.
D) It reveals how effectively a firm has increased its assets.