Common size financial statements are not useful in analyzing companies of different size.

Name: Common size financial statements are not useful in analyzing companies of different size.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common size financial statements are useful in analyzing companies of different size because they express financial data as a percentage of a common base, such as total assets or total revenue, which allows for comparisons between companies regardless of their size.

Common Size Financial Statements Are Not Useful in Analyzing Companies