On a common-base year ﬁnancial statement, all accounts are expressed relative to the base:
A) Year amount.
B) Amount of sales.
C) Amount of total assets.
D) Net income.
E) Net cash ﬂow.

Question

Quizplus · Accepted Answer

In a common-base year financial statement, all accounts are expressed relative to a specific base year amount, often expressed as a percentage or ratio. This allows for easier comparison of financial performance over time.

On a Common-Base Year ﬁNancial Statement, All Accounts Are Expressed