Common sized statements:
A) Depict the cash flows of a firm.
B) Are useful in making comparisons.
C) Reflect the ratio analysis of a firm.
D) Show the sources and uses of cash.
E) Reflect the market value of a firm.

Question

Quizplus · Accepted Answer

Common size statements are useful in making comparisons because they standardize financial statements of companies of different sizes, making it easier to compare financial metrics across companies or across time periods for the same company.

Common Sized Statements