Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:
A) Asset comparative statements.
B) Percentage comparative statements.
C) Common-size comparative statements.
D) Sales comparative statements.
E) General-purpose financial statements.

Question

Quizplus · Accepted Answer

Common-size comparative statements express all individual financial statement amounts as a percentage of a base amount, such as total assets or net sales. This allows for easier comparison between different periods or companies with varying levels of assets or sales.

Comparative Financial Statements in Which Each Individual Financial Statement Amount