A financial statement that shows each line item as a percentage of one key item on the statement is referred to as a:
A)benchmarking.
B)common-size statement.
C)horizontal analysis.
D)financial ratio analysis.

Question

Quizplus · Accepted Answer

A common-size statement is a financial statement that presents each line item as a percentage of a single base figure. This allows for easy comparison between different companies or different periods for the same company. Benchmarking refers to comparing a company's performance to that of its competitors or industry standards. Horizontal analysis is the comparison of financial statements from different periods. Financial ratio analysis involves calculating and analyzing various financial ratios to evaluate a company's performance.

A Financial Statement That Shows Each Line Item as a Percentage