To compare companies that differ in size,analysts use ________.
A)MD&A
B)10-K filings with the Securities and Exchange Commission
C)common size financial statements
D)the market-value method for investments

Question

Quizplus · Accepted Answer

Common size financial statements are used to compare companies of different sizes by expressing financial statements as percentages of a common base. This allows for a more meaningful comparison of companies with different levels of revenue and assets. MD&A and 10-K filings provide useful information but are not specifically designed for comparing companies of different sizes. The market-value method for investments is not relevant to comparing companies of different sizes.

To Compare Companies That Differ in Size,analysts Use ________