An analytical tool for comparing two companies of different sizes is:
A)Common size statements
B)Short-term liquidity
C)Financial leverage
D)Performance

Question

Quizplus · Accepted Answer

Common size statements are a useful analytical tool for comparing companies of different sizes. They express financial statement items as a percentage of a common base, such as total assets or net sales, making it easier to compare the financial performance of companies of different sizes.

An Analytical Tool for Comparing Two Companies of Different Sizes