Common- size statements are particularly useful because:
A) the percentages can be added to and/or subtracted from one another
B) dollars are converted to percentages
C) they are a means of comparing one company to another company within the same industry
D) accounts are aggregated together so the same accounts can be used consistently from year to year

Question

Quizplus · Accepted Answer

Common-size statements allow for comparison between companies by expressing financial statement items as percentages, facilitating analysis regardless of company size.

Common- Size Statements Are Particularly Useful Because