Asked by Tally Egbert on Jul 20, 2024
Verified
Common size income statements recast each statement item as a percent of total assets.
Common Size Statements
Financial statements that present all line items as a percentage of a base figure, facilitating comparison across time periods or companies.
Total Assets
The total of a company's assets, encompassing both current and long-term assets.
- Understand the basics and purposes of common size statements and trend statements.
Verified Answer
AE
Allyson EversJul 26, 2024
Final Answer :
False
Explanation :
Common size income statements recast each statement item as a percent of total revenue or sales, not as a percent of total assets.
Learning Objectives
- Understand the basics and purposes of common size statements and trend statements.
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