An advantage of common-size statements is that they reflect the relative sizes of companies under analysis.

Name: An advantage of common-size statements is that they reflect the relative sizes of companies under analysis.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common-size statements standardize financial statements by expressing each line item as a percentage of a base figure, allowing for comparison across different-sized companies, but they do not reflect the relative sizes of the companies themselves.

An Advantage of Common-Size Statements Is That They Reflect the Relative