A financial statement showing each item on the statement as a percentage of one key item on the statement, called the base, is referred to as:
A)common-size statement.
B)trend analysis.
C)horizontal analysis.
D)benchmarking.

Question

Quizplus · Accepted Answer

A common-size statement expresses each item as a percentage of the base item, which makes it easier to compare and analyze financial statements from different periods or companies. Trend analysis looks at changes in financial data over time, horizontal analysis compares data from different periods side-by-side, and benchmarking compares a company's performance to its competitors.

A Financial Statement Showing Each Item on the Statement as a Percentage