Common-size analysis is also known as:
A) Trend analysis.
B) Ratio analysis.
C) Vertical analysis.
D) Matrix analysis.

Question

Quizplus · Accepted Answer

Common-size analysis is a type of vertical analysis where financial statements are adjusted to show each line item as a percentage of a base amount. This makes it easier to compare the relative size of different items within a financial statement. It is not the same as trend analysis or ratio analysis, which are different types of financial analysis. Matrix analysis is not a term commonly used in financial analysis.

Common-Size Analysis Is Also Known As