Common-size financial statements:
A) are a specialized application of ratio analysis.
B) allow us to make meaningful comparisons between the financial statements of two firms that are different in size.
C) are prepared by having each financial statement item expressed as a percentage of some base number, such as total assets or total revenues.
D) All of the above are true.
Answer: D) All of the above are true.
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Sensitivity analysis cannot be used to examine the effects of
A) changes in the contribution rates for each variable. B) changes in the technological coefficients. C) changes in the available resources. D) the addition or deletion of a constraint. E) None of the above