Q278
A technique uses in comparative analysis of financial statement is
A.
graphical analysis
B.
preference analysis
C.
common size analysis
AnswerD.
returning analysis
Answer: Option C
Solution
Answer: Option C
Solution:
A technique uses in comparative analysis of financial statement is common size analysis. Common size, or vertical analysis, is a method of evaluating financial information by expressing each item in a financial statement as a percentage of a base amount for the same time period. A company can use this analysis on its balance sheet or its income statement.