A common size statement aids in comparing different companies as their amounts are stated in percentages of the total base rather than numbers.

Question

Quizplus · Accepted Answer

A common size statement expresses each item in a financial statement as a percentage of a common base amount, such as total assets, total liabilities, or total revenue. This allows for easier comparisons between companies, as the percentages can be compared rather than the raw numbers.

A Common Size Statement Aids in Comparing Different Companies as Their