Finance chapter 3. - Study guides, Class notes & Summaries
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finance chapter 3. Splendid Discrimination.
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---4March 20242023/2024A+
- common-size balance sheets 
compute all accounts as a percentage of total assets 
common-size income statements 
compute all line items as a percent of sales 
standardized financial statements 
(1) make it easier to compare financial information, particularly as the company grows 
(2) They are also useful for comparing companies of different sizes, particularly within 
the same industry 
categories of financial ratios 
(1) Short-term solvency or liquidity ratios 
(2) Long-term solvency or financ...
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Thompson12