Common size statements allow the comparison of two or more companies with different amounts of net sales and net assets.

Name: Common size statements allow the comparison of two or more companies with different amounts of net sales and net assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common size statements express each item on the financial statement as a percentage of a base figure (usually net sales or total assets), allowing for comparisons between companies of different sizes.

Common Size Statements Allow the Comparison of Two or More