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 percentages of a common base figure, which facilitates comparison across companies and time periods regardless of size.

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