Comparative financial statements in which each amount is expressed as a percentage of a base amount,and in which the base amount is expressed as 100%,are called
A)Comparative statements
B)Common-size comparative statements
C)General-purpose financial statements
D)Base line statements
E)Index statements

Question

Quizplus · Accepted Answer

Common-size comparative statements express each amount as a percentage of a base amount, typically the total assets, and allow for easy comparison of financial ratios between companies of different sizes. The other answer choices are not accurate descriptions of this type of financial statement.

Comparative Financial Statements in Which Each Amount Is Expressed as a Percentage