Common-size financial statements recast each statement item as
A)a percentage using industry averages for the "base number."
B)a percentage using a base year number for each line item.
C)a percentage of some "base number" on the financial statement in question.
D)a percentage of the "bottom line."

Question

Quizplus · Accepted Answer

Common-size financial statements recast each statement item as a percentage of some "base number" on the financial statement in question, such as total assets for the balance sheet or net sales for the income statement.

Common-Size Financial Statements Recast Each Statement Item as