Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:
A) General-purpose financial statements.
B) Asset comparative statements.
C) Percentage comparative statements.
D) Sales comparative statements.
E) Common-size comparative statements.

Question

Quizplus · Accepted Answer

Common-size comparative statements express each individual financial statement item as a percentage of a base amount, such as total assets or total revenue. This helps to analyze the relative proportions of different items within the financial statements, allowing for easier comparison between companies or over time.

Comparative Financial Statements in Which Each Individual Financial Statement Amount