The best way to study the relationship of the components within a financial statement is to prepare

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The best way to study the relationship of the components within a financial statement is to prepare

  1. common size statements.
  2. a trend analysis

. c. profitability analysis.

  1. ratio analysis.
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Answer: a. common size statements.

Explanation

It is  show all items as % of  the common base figure. This type of the financial statement help in  easy analysis for two or more companies or between two or more  time periods of a a organization

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