Common-size statements are especially helpful in comparing companies of different size.

Name: Common-size statements are especially helpful in comparing companies of different size.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common-size statements express financial information as a percentage of a base amount, such as total assets or net sales. This makes it easier to compare companies of different sizes because it focuses on the proportion of each item on the statement relative to a common base.

Common-Size Statements Are Especially Helpful in Comparing Companies of Different