Common-size statements:
A)Reveal changes in the relative magnitude of each financial statement item.
B)Do not emphasize the relative magnitude of each item.
C)Compare financial statements over time.
D)Show the dollar amount of change for financial statement items.
E)Consist of two or more balance sheets arranged side-by-side.

Question

Quizplus · Accepted Answer

Common-size statements express each item as a percentage of a base amount, revealing changes in the relative magnitude of each financial statement item.

Common-Size Statements