The advantage of common-sized financial statements is that they
A) offer a clear comparison between companies of different sizes.
B) are more accurate than the unconverted source statements.
C) have all figures in U.S. dollars for comparative purposes.
D) have been subject to a final audit by one public accounting firm.

Question

Quizplus · Accepted Answer

Common-sized financial statements express each line item as a percentage of a base figure, allowing for easy comparison between companies of different sizes by standardizing the financial data.

The Advantage of Common-Sized Financial Statements Is That They