Common-size analysis is a(n):
A)Historical ratio.
B)Longitudinal comparison.
C)Cross-sectional comparison.
D)Industrial ratio.

Question

Quizplus · Accepted Answer

Common-size analysis is a cross-sectional comparison because it involves comparing financial statements of different companies or different periods by expressing each line item as a percentage of a common base figure, such as total sales or total assets, allowing for comparison across different sizes and industries.

Common-Size Analysis Is A(n)