Common-size financial statements are useful in
A)Analyzing income statements
B)Analyzing companies of different sizes
C)Alerting users of differences that should be explored and explained
D)Comparing different geographical regions of a company
E)All of these

Question

Quizplus · Accepted Answer

Common-size financial statements are helpful in analyzing income statements, as well as comparing companies of different sizes and different geographical regions within a company. Most importantly, common-size financial statements highlight differences that should be investigated and explained. Therefore, choice E is the best option as it covers all of the above situations.

Common-Size Financial Statements Are Useful in