Common-size financial statements express balance sheet and income statement numbers as a percent of sales.

Name: Common-size financial statements express balance sheet and income statement numbers as a percent of sales.
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Question

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Common-size financial statements express all items as a percentage of a common base: for the balance sheet, each item is expressed as a percentage of total assets, and for the income statement, each item is expressed as a percentage of sales.

Common-Size Financial Statements Express Balance Sheet and Income Statement Numbers