A common-size statement reports only percentages that appear in a:
A)horizontal analysis report.
B)financial statement.
C)vertical analysis report.
D)ratio analysis report.

Question

Quizplus · Accepted Answer

A common-size statement is a type of vertical analysis report that reports percentages of each financial statement item relative to a base figure, such as total assets or total revenues. Therefore, the only choice that makes sense is C.

A Common-Size Statement Reports Only Percentages That Appear in A