Question

Statements in which all items are expressed only in relative terms (percentages of a base) are termed:
a.Vertical Statements
b.Horizontal Statements
c.Funds Statements
d.Common-Size Statements
e.none of the answers are correct

Answer 1

Answer:

The correct option is D

Explanation:

Common size income statement is the one of the statement which is an income statement and in this statement each item is stated or defined as the percentage (%) of the sales or revenue value.

And this statement is primarily used for the analysis that is vertical and the each and every item in the financial statement is represented as the percentage (%) of the base figure from the statement.

So, the statement in which all the items are states in relatives terms are called to be the common size income statements.