financial statement analysis

fenil 13 April 2020 at 12:36 PM

One of the main difficulties in the comparison of financial statements between companies or between periods for the same company is the difference in size. A method to deal with the size difference is to a) make adjustments to each item on the income statement and balance sheet based on industry averages. b) state each item on the income statement and balance sheet as a percentage of a targeted base amount rather than as a numerical amount. c) state each item on the income statement and balance sheet as a percentage of a relevant base amount rather than as a numerical amount. d) make adjustments to each item on the income statement and balance sheet based on benchmarking.

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FACULTY 15 May 2020 at 06:23 PM

state each item on the income statement and balance sheet as a percentage of a relevant base amount rather than as a numerical amount.

(option C)

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