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7 ) The use of common size financial statements is an example of Select one: a....

7 ) The use of common size financial statements is an example of Select one: a. ratio analysis. b. horizontal analysis. c. vertical analysis. d. liquidity analysis.

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Answer #1

Ans is C vertical analysis

Common size financial statement are statements under which we make the financial statements comparable. To make it comparable we convert absolute numbers to percentage of some base amount.

Hence , the other name of common size financial statement is Vertical Analysis.

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