Common-size analysis focuses on the comparison of financial statements over time (comparison carried line item by line item against the like value in a base-year):

Question

Quizplus · Accepted Answer

Common-size analysis involves expressing each line item on a financial statement as a percentage of a base figure (e.g., total assets on the balance sheet or sales on the income statement) to allow for comparisons across companies or periods, rather than comparing financial statements line by line against a base year.

Common-Size Analysis Focuses on the Comparison of Financial Statements Over