Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called:
A) comparative financial statements.
B) common-size statements.
C) cash flow analysis.
D) horizontal analysis.

Question

Quizplus · Accepted Answer

Common-size statements express each item as a percentage of a base amount, facilitating comparison across periods or companies by removing the effect of size differences.

Comparative Reports in Which Each Item Is Expressed as a Percentage