In common size analysis
A) a base amount is required.
B) a base amount is optional.
C) the same base is used across all financial statements analyzed.
D) the results of the horizontal analysis are necessary inputs for performing the analysis.

Question

Quizplus · Accepted Answer

In common size analysis, a base amount is required to express each line item as a percentage of that base, such as total assets for a balance sheet or total sales for an income statement.

In Common Size Analysis