What analytic tool allows you to compare income statements from different periods, even if the dollar figures are very different?
A) Financial analysis
B) Asset analyses
C) Income analyses
D) Same-size analysis
E) None of the above

Question

Quizplus · Accepted Answer

Same-size analysis, also known as common-size analysis, allows for the comparison of income statements from different periods by converting the dollar figures to percentages or ratios. This makes it easier to identify changes in the composition of revenue, expenses and profits, regardless of the absolute dollar figures.

What Analytic Tool Allows You to Compare Income Statements from Different