What is the best way to study the relationship of the components of financial statements?
A) Perform horizontal analysis
B) Perform ratio analysis
C) Prepare common-size statements
D) Perform trend analysis

Question

Quizplus · Accepted Answer

Common-size statements allow for the comparison of financial statement components as a percentage of a base figure, making it easier to study relationships and compare across periods or companies.

What Is the Best Way to Study the Relationship of the Components