Which of the following is the most useful in analyzing companies of different sizes?
A) comparative statements
B) common-sized financial statements
C) price-level accounting
D) audit report

Question

Quizplus · Accepted Answer

Common-sized financial statements allow for the comparison of companies of different sizes by presenting financial information as a percentage of sales or total assets. This allows for a more meaningful analysis of financial performance and trends across companies of varying sizes. Comparative statements may also be useful, but they do not adjust for differences in company size. Price-level accounting and audit reports are not directly relevant to analyzing companies of different sizes.

Which of the Following Is the Most Useful in Analyzing