When using common-size statements,
A) data may be selected for the same business as of different dates,or for two or more businesses as of the same date.
B) relationships should be stated in terms of ratios.
C) dollar changes are reported over a period of at least three years.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Common-size statements allow for comparison of financial data across different dates for the same business or across different businesses at the same date by expressing items as a percentage of a common base figure, such as total assets or sales.

When Using Common-Size Statements