To compare companies that differ in size,analysts use ________.
A) MD&A
B) 10-K filings with the Securities and Exchange Commission
C) common size financial statements
D) consolidated financial statements

Question

Quizplus · Accepted Answer

Common size financial statements are used to compare companies of different sizes by expressing all items on the financial statement as a percentage of a common base, such as total assets, which allows for meaningful comparisons between companies of different sizes. The other options, such as MD&A and consolidated financial statements, may provide useful information but are not specifically designed for comparing the financial information of companies of different sizes. 10-K filings are required annual reports submitted by publicly traded companies to the SEC and provide a wealth of information about a company's financial performance and operations, but they do not directly address the issue of comparing companies of different sizes.

To Compare Companies That Differ in Size,analysts Use ________