Basic analytical method in which all items are expressed only in relative terms (percentages of a common base) and are often useful for comparing one company with another or for comparing a company with industry averages are:
A) profitability analysis.
B) percentage statements.
C) horizontal analysis.
D) common-sized statements.

Question

Quizplus · Accepted Answer

Common-sized statements express all items in percentages of a common base, making it easier to compare companies or evaluate a company's performance against industry averages.  Profitability analysis focuses on measuring a company's profitability, while percentage statements and horizontal analysis both express dollar amounts as percentages but do not necessarily use a common base for comparison.

Basic Analytical Method in Which All Items Are Expressed Only