Which of the following is a method of presenting a firm's financial statements in percentage terms...

Which of the following is a method of presenting a firm's financial statements in percentage terms by dividing every item on the income statement by sales and dividing every item on the balance sheet by total assets?

Multiple Choice

common-size financial statements
peer group analysis
percentage normalization
common-base year analysis
industry trend profiling

Expert Solution

Option (a) is correct

In common size financial statements, all items are expressed as a percentage of sales in income statement and as a percentage of total assets in the balance sheet.

jeff jeffy answered 2 years ago

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