Statements that are often used to compare different size businesses are called:
A)comparative analysis.
B)cash flow analysis.
C)common-size statements.
D)horizontal analysis.

Question

Quizplus · Accepted Answer

Common-size statements are financial statements that present all items in percentage terms. For balance sheets, this is as a percentage of total assets, and for income statements, this is as a percentage of net sales. This approach allows for easier comparison between companies of different sizes.

Statements That Are Often Used to Compare Different Size Businesses