Financial statements in which each item is stated as a percentage of some specific base item in the same statement are known as:
A) common size statements.
B) base rate statements.
C) general purpose statements.
D) comparative statements.

Question

Quizplus · Accepted Answer

Financial statements in which each item is stated as a percentage of some specific base item in the same statement are known as common size statements. This allows for easier comparison of financial data between companies of different sizes or with different revenue levels.

Financial Statements in Which Each Item Is Stated as a Percentage