Common-size financial statements are expressed as
A) percentages of other numbers on the same statements.
B) a percent comparison of other companies in the same industry.
C) a common way of preparing certain types of financial statements.
D) percentages of increases and decreases compared to the previous accounting period.

Question

Quizplus · Accepted Answer

Common-size financial statements express each line item as a percentage of a base figure from the same statement, such as total assets for a balance sheet or total sales for an income statement.

Common-Size Financial Statements Are Expressed as