In regards to benchmarking, which of the following statements is correct?
A) The two main types of benchmarks in financial statement analysis include benchmarking against prior year of the same company and benchmarking against a key competitor.
B) Benchmarking is the practice of comparing a company with information provided by the Financial Standards Accounting Board.
C) Risk Management Association provides common-size statements for most industries.
D) It is not helpful to provide common-size percentages in a graphical manner.
C
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Evaluating strategic choices should involve four tests:
A. consistency, consonance, cost leadership, and feasibility B. competitive advantages, differentiation, feasibility, and consistency C. competitive advantages, consistency, feasibility, and consonance D. consistency, consonance, competitive advantages, and differentiation
Which of the following is NOT correct regarding the rate of return on assets?
a. The rate of return on assets measures management's ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity.
CMA is an acronym that stands for Certified Manufacturing Accountant
Indicate whether the statement is true or false
When comparing a retail business to a service business, the financial statement that changes the least is the
A) Balance Sheet B) Income Statement C) Statement of Owner's Equity D) Statement of Cash Flow