The common size statement percentages are different from those that appear in horizontal analysis.

Name: The common size statement percentages are different from those that appear in horizontal analysis.
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Question

Quizplus · Accepted Answer

The common size statement presents each line item as a percentage of a base (usually total assets or total revenue), while horizontal analysis compares changes in line items between two periods as a percentage change. Therefore, the percentages in each analysis will be different.

The Common Size Statement Percentages Are Different from Those That