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    25. A common size income statement:
    a. uses the same dollar amount of revenues for each year.
    b. expresses items as a percentage of revenues.
    c. makes comparisons between years more difficult.
    d. is useful in estimating the impact of inflation.

    26. Which of the following is(are) an example of a measure of leverage?
    a. Debt yield.
    b. Debt payout ratio.
    c. Preferred dividend coverage ratio.
    d. Debt/equity ratio.
    e. All of these.

    27. Which of the following activities is not part of the management planning and control cycle:
    a. data collection and performance feedback.
    b. implementation of plans.
    c. providing information to investors and creditors.
    d. revisiting plans.

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    25. A common size income statement:
    b. expresses items as a percentage of revenues.
    Every amount is converted to a percent of sales! On a common size balance sheet, everything is converted to a percent of total assets.

    26.
    Which of ...

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