Common-size statements:
A)Reveal changes in the relative importance of each financial statement item to a base amount.
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 patterns in data across successive periods.

Question

Quizplus · Accepted Answer

Common-size statements express each item as a percentage of a base amount, revealing changes in the relative importance of each financial statement item.

Common-Size Statements