Which of the following types of analysis included common-size financial statements?
A) Common-size financial statements are a type of trend analysis.
B) Common-size financial statements are a type of vertical analysis.
C) Common-size financial statements are a type of ratio analysis.
D) Common-size financial statements are a type of horizontal analysis.

Question

Quizplus · Accepted Answer

Common-size financial statements are a type of vertical analysis, where each line item on a financial statement is listed as a percentage of another item. This allows for easier comparison across companies and time periods.

Which of the Following Types of Analysis Included Common-Size Financial