A _____________ standardizes items on the statement of comprehensive income and statement of financial position as a percentage of total sales and total assets, respectively.
A) Tax reconciliation statement.
B) statement of standardization
C) statement of changes in financial position
D) Common-base year statement.
E) Common-size statement.

Question

Quizplus · Accepted Answer

A common-size statement standardizes financial statement items by expressing them as a percentage of a common base figure, such as total sales for the income statement and total assets for the balance sheet, facilitating comparison across periods and companies.

A _____________ Standardizes Items on the Statement of Comprehensive Income