Line items on common-size financial statements are expressed in percentages of some base such as total assets.

Name: Line items on common-size financial statements are expressed in percentages of some base such as total assets.
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Question

Quizplus · Accepted Answer

This statement is true. Common-size financial statements express line items as a percentage of a base such as total assets or total revenue, making it easier to compare financial statements of companies of different sizes.

Line Items on Common-Size Financial Statements Are Expressed in Percentages