If an analyst wishes to compare several different companies that vary in size, which of the following types of financial statement analysis would be used?
A) Vertical analysis
B) Horizontal analysis
C) Ratio analysis
D) Common-size financial statement analysis

Question

Quizplus · Accepted Answer

Common-size financial statement analysis allows for the comparison of companies of different sizes by expressing all financial statement items as a percentage of a base amount, such as total assets or sales.

If an Analyst Wishes to Compare Several Different Companies That