Common-size statements:
A) Compare financial statements over time.
B) Show the dollar amount of change for financial statement items.
C) Do not emphasize the relative importance of each item.
D) Reveal patterns in data across successive periods.
E) Reveal changes in the relative importance of each financial statement item to a base amount.

Question

Quizplus · Accepted Answer

Common-size statements reveal changes in the relative importance of each financial statement item to a base amount.

Common-Size Statements