The common-size percent is calculated by
A)Dividing the analysis amount by the base amount
B)Dividing the base amount by the analysis amount
C)Dividing the analysis amount by the base amount and multiplying the result by 100
D)Dividing the base amount by the analysis amount and multiplying the result by 100
E)Subtracting the base amount from the analysis amount and multiplying the result by 100

Question

Quizplus · Accepted Answer

The common-size percent is calculated by dividing the analysis amount by the base amount and multiplying the result by 100. This expresses each item in the financial statement as a percentage of a base number, which helps to understand the relative size of each item.

The Common-Size Percent Is Calculated by