Common size income statements make it easier to compare firms
A)That use different inventory valuation methods ( FIFO vs.LIFO ).
B)In different industries.
C)With different degrees of leverage.
D)Of different sizes.

Question

Quizplus · Accepted Answer

Common size income statements express each item as a percentage of sales, which allows for easier comparison of companies of different sizes by standardizing the data.

Common Size Income Statements Make It Easier to Compare Firms