Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount, and in which the base amount is expressed as 100%, are called:
A) Comparative statements.
B) Common-size comparative statements.
C) General-purpose financial statements.
D) Base line statements.
E) Index statements.

Question

Quizplus · Accepted Answer

Common-size comparative statements express each financial statement item as a percentage of a base amount (usually total assets, sales, or equity), allowing for easy comparison between companies of different sizes or within the same company over time.

Comparative Financial Statements in Which Each Individual Financial Statement Amount