One reason that a common-size statement is a useful tool in financial analysis...

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JEWELYB

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...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.
 
Answer: D

Common - size statement is generally used to compare data between companies that belong to the same industry.
 
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