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      Question

      Which tool of financial statement analysis helps in

      comparing a company's financial performance with industry averages?
      A Trend analysis Correct Answer Incorrect Answer
      B Common size analysis Correct Answer Incorrect Answer
      C Benchmarking analysis Correct Answer Incorrect Answer
      D Ratio analysis Correct Answer Incorrect Answer

      Solution

      Benchmarking analysis helps in comparing a company's financial performance with industry averages to identify strengths and weaknesses.

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