Which one of the following standardizes items on the income statement and balance sheet relative to their values as of a chosen point in time?
A) Statement of standardization
B) Statement of cash flows
C) Common-base year statement
D) Common-size statement
E) Base reconciliation statement

Question

Quizplus · Accepted Answer

The common-base year statement standardizes items on the income statement and balance sheet relative to their values as of a chosen point in time, typically a base year. This allows for year-to-year comparisons by minimizing the impact of inflation or changes in the size of the company. The other options (A, B, D, E) do not refer to this specific method of standardization.

Which One of the Following Standardizes Items on the Income