[amp_mcq option1=”graphical analysis” option2=”preference analysis” option3=”common size analysis” option4=”returning analysis” correct=”option3″]<\/p>\n
The correct answer is C. common size analysis.<\/p>\n
Common size analysis is a technique used in comparative analysis of financial statements to make financial statements more comparable across different time periods or between different companies. It is done by expressing all items in the financial statements as a percentage of a common base, such as total assets or net sales. This allows users to compare the relative size of different items in the financial statements and to identify trends over time.<\/p>\n
Graphical analysis is a technique used to present financial information in a visual format, such as a bar graph, line graph, or pie chart. This can be helpful in identifying trends and relationships in the data.<\/p>\n
Preference analysis is a technique used to identify the preferences of investors or other users of financial information. This can be done by surveying investors or by analyzing their past investment decisions.<\/p>\n
Returning analysis is a technique used to measure the return on investment (ROI) of a company or investment. This is done by dividing the company’s net income by its total assets or by dividing the investor’s return by the amount of money they invested.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”graphical analysis” option2=”preference analysis” option3=”common size analysis” option4=”returning analysis” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-58700","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n