What is a common-size financial statement


Response to the following questions:

1. What characteristic of a company does current ratio measure?

2. Company A has a return on sales of 6%. Is this a high value for return on sales?

3. How does the price-earnings ratio differ from most other financial ratios?

4. What is a common-size financial statement? What are its advantages?

 

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Financial Accounting: What is a common-size financial statement
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