Which one of the following standardizes items on the income statement and balance sheet relative to their values as of a common 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

A common-base year statement standardizes items on the income statement and balance sheet relative to their values as of a common point in time, typically a specific year. This allows for easier comparison between years and can help identify trends and changes. A statement of standardization, base reconciliation statement, and statement of cash flows are not specific methods for standardizing items on financial statements. A common-size statement standardizes items as a percentage of a base value, such as total assets or revenue.

Which One of the Following Standardizes Items on the Income