Which of the following are better indicated by percentage change statements than common-size statements?
A) monetary changes
B) profitability
C) stability
D) growth and decline

Question

Quizplus · Accepted Answer

Percentage change statements are better indicated for growth and decline as they show the relative change in the values compared to a base period. Common-size statements, on the other hand, show the proportion or percentage of each item in relation to a base item. Monetary changes, profitability, and stability can all be measured using both percentage change statements and common-size statements.

Which of the Following Are Better Indicated by Percentage Change