Basic analytical method in which all items are expressed only in relative terms (percentages of a common base)and are often useful for comparing one company with another or for comparing a company with industry averages are:
A)horizontal analysis.
B)percentage statements.
C)profitability analysis.
D)common-sized statements.

Question

Quizplus · Accepted Answer

Common-sized statements express all items as percentages of a common base, making it easier to compare companies or industry averages. Horizontal analysis compares financial data over time, percentage statements express relationships between two financial items, and profitability analysis focuses on measuring a company's ability to generate income.

Basic Analytical Method in Which All Items Are Expressed Only