Common-size financial statements ________.
A) measure financial standing or operational performance relative to a base period
B) measure balance sheet items relative to income statement items
C) measure each financial statement line item relative to some key amount or total.
D) measure financial performance with financial statement items relative to some key amount or total adjusted for inflation

Question

Quizplus · Accepted Answer

Common-size financial statements express each line item as a percentage of a key amount or total, such as total assets for the balance sheet or total sales for the income statement, allowing for easy comparison across periods or companies.

Common-Size Financial Statements ________