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Question
Common size analysis is also known as _____ analysis.
Options
Impact of horizontal line
Impact of vertical line
Both of these
None of these
MCQ
Fill in the Blanks
Solution
Common size analysis is also known as the impact of vertical line analysis.
Explanation:
Common-size statements are useful for intra-firm year-to-year comparisons as well as inter-firm year-to-year or multiple-year comparisons. This type of study is also known as vertical analysis.
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