Of the items listed below,the one that would be most helpful in the comparison of different-sized companies is:
A) performing horizontal analysis
B) preparing common-size financial statements
C) comparing working capital balances
D) looking at the amount of income earned by each company

Question

Quizplus · Accepted Answer

Preparing common-size financial statements would be the most helpful in comparing different-sized companies as it allows for easier comparison of financial data by expressing each item on the statement as a percentage of a common base, such as total assets. This makes it easier to see differences and similarities between companies of different sizes.

Of the Items Listed Below,the One That Would Be Most