Match each definition that follows with the term (a-h) it defines.
-Useful for comparing one company to another or to industry averages
A)Solvency
B)Leverage
C)Times interest earned
D)Horizontal analysis
E)Vertical analysis
F)Common-sized financial statements
G)Current position analysis
H)Profitability analysis

Question

Quizplus · Accepted Answer

Common-sized financial statements are used to compare one company to another or to industry averages by expressing items as a percentage of a common base figure, facilitating comparison across companies regardless of size.

Match Each Definition That Follows with the Term (A-H) It