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mooncalled mooncalled
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A month ago
Answer the following questions related to common-size financial statements?

a.What are common-size financial statements? How are common-size financial
statements used?
b.What is the base for a common-size income statement?
c.What is the base for a common-size balance sheet?
Textbook 
Managerial Accounting

Managerial Accounting


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webmom2008webmom2008
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A month ago
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a.Common size financial statements express each financial statement amount as a
percentage of a key component. Common size balance sheets express all components as a percentage of total assets. Common size income statements express all components as a percentage of net sales.  A common-size analysis examines changes in the relative size of account balances within a single statement. Common-size statements are especially helpful in comparing companies of different sizes.

b.In preparing a common-size income statement, you express all revenue and expense
accounts as a percentage of net sales revenue.

c.In preparing a common-size balance sheet, you express all account balances, asset,
liability, and equity, as a percentage of total assets.

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mooncalled Author
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A month ago
this is exactly what I needed
bbbbbbbh
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You make an excellent tutor!
vanna2014
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2 hours ago
Correct Slight Smile TY
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