Common-sized financial statements are included in which type of analysis?
A)Vertical analysis
B)Trend analysis
C)Ratio analysis
D)Horizontal analysis

Question

Quizplus · Accepted Answer

Common-sized financial statements are used in vertical analysis, where each line item on the financial statement is expressed as a percentage of a common base such as net sales or total assets. This allows for comparison and analysis of relative changes within the financial statements.

Common-Sized Financial Statements Are Included in Which Type of Analysis