Which of the following below generally is the most useful in analyzing companies of different sizes
A) comparative statements
B) common-sized financial statements
C) price-level accounting
D) audit report

Question

Quizplus · Accepted Answer

Common-sized financial statements are the most useful in analyzing companies of different sizes because they standardize financial information by expressing items on the financial statement as a percentage of a common base. This allows for easy comparison between companies of various sizes. Comparative statements show changes in financial information over time, price-level accounting adjusts for inflation, and an audit report provides an independent opinion on the accuracy of the financial statements.

Which of the Following Below Generally Is the Most Useful