Common size financial statements show a the

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40. Common-size financial statements show: a. the percentage breakdowns of the balance sheet that allow easier comparisons across companies. b. the balance sheet items expressed as percentages of total assets, and income statement items are expressed as percentages of sales. c. the percentage breakdowns of the income statement that allow easier comparisons across companies. d. all of these c 41. Common-base-year analysis: years ago. items more (less) than 100% have increased (declined). a 42. recognize(s) that the accounting system always records two sides to every transaction, a debit and a credit, and there are real people or real firms on each side of the transaction.
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a 43. recognize(s) that financial information provides many observable signals about customers, competitors, and suppliers. b 44. use(s) financial statements and the accounting system to help identify and estimate the incremental expected cash flows for making financial decisions. a. The Signaling Principle b. The Incremental Benefits Principle c. The Risk-Return Tradeoff Principle d. The Behavioral Principle d 45. Which of the following statements (if any) is false? observable signals about customers, competitors, and suppliers. system to help identify and estimate the incremental expected cash flows for making financial decisions. based on future risks and returns a 46. Which of the following statements is false? records two sides to every transaction, a debit and a credit, and there are real people or real firms on each side of the transaction. observable signals about customers, competitors, and suppliers. based on future risks and returns thousands of other firms to apply this principle. x
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