A common-size statement eases the comparison of different companies because their amounts are stated in percentages.

Name: A common-size statement eases the comparison of different companies because their amounts are stated in percentages.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A common-size statement expresses financial statement items as a percentage of a common base. This allows for easier comparison between different companies as it normalizes the data and eliminates size differences between firms.

A Common-Size Statement Eases the Comparison of Different Companies Because