Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amou

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ryzh [129]

2 years ago

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Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amou

nt are called?

Business

1 answer:

Marianna [84] · Answer 1 · 2023-07-29T11:44:07+03:00

Comparative financial statements in which each financial statement amount is expressed as a percentage of a base amount are called Common-size comparative statements.

<h3>What is a comparative financial statement?</h3>

A comparative statement is a record used to compare a particular financial statement with previous period statements. Previous financials are shown alongside the latest figures in side-by-side columns, allowing investors to identify trends, track a company's progress and approximate it with industry rivals.

<h3>What is a comparative statement also known as?</h3>

Comparative statements are the form of horizontal analysis. A common size statement shows the profitability and financial position of a firm for different periods in a comparative form to give an idea about the position of two or more periods.

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