Common size financial statements are not useful in analyzing companies of different size.Common size analysis provides information by expressing each financial statement amount as a percent of another amount on the same statement.These percentages allow for the comparison of financial statement items between companies of different size.

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Common size financial statements are useful in analyzing companies of different size as they allow for accurate comparison by expressing financial statement items as a percentage of another amount on the same statement. This standardizes the figures and makes it easier to identify trends and differences between companies of varying sizes.

Common Size Financial Statements Are Not Useful in Analyzing Companies