Question

Which one of the following are correct in connection with the Common Size Statement?
(A) Expressed as a percentage on revenue from operation
(B) Horizontal analysis
(C) Vertical analysis
(D) Expressed as a percentage on total assets

• A. (A), (B), and (D) only
• B. (A), (B), and (C) only
• C. (A), (C), and (D) only
• D. (B), (C), and (D) only

Answer 1

Answer: (C)

(A), (C), and (D) only

Answer 2

Common Size Statements use vertical analysis and express values as percentages on revenue and total assets.
Hence, the correct answer is Option 3.