One way to measure a company's financial performance is to benchmark against that of its competition.Which of the below is NOT a problem a company faces when benchmarking this way?
A)A problem arises when we use financial statements of different firms.
B)Firms are of different sizes,and thus comparisons may be troubling.
C)We cannot restate common-size financial statements for different firms.
D)All of these are problems.

Question

Quizplus · Accepted Answer

This is not a problem as common-size financial statements can be restated for different firms, making comparisons easier. However, A and B are problems, as financial statements can vary in format and size, making it difficult to compare them accurately.

One Way to Measure a Company's Financial Performance Is to Benchmark