Chartered Financial Analyst Level 1
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In a common-size analysis of the cash flow statement, each line item of cash inflow is typically expressed as a percentage of:
Explanation:
In a common-size cash flow statement, there are two primary methods for expressing line items:
Option B (net revenue) is correct because it aligns with the second method. Options A (total assets) and C (net cash flow) are incorrect, as neither is a standard basis for common-size cash flow analysis.