Common-size statements
A)Reveal changes in the relative importance of each financial statement item
B)Do not emphasize the relative importance of each item
C)Compare financial statements over time
D)Show the dollar amount of change for financial statement items
E)Reveal changes in the relative importance of each financial statement item and show the dollar amount of change for financial statement items

Question

Quizplus · Accepted Answer

Common-size statements reveal changes in the relative importance of each financial statement item by expressing each item as a percentage of a base amount, such as total assets or sales.

Common-Size Statements