Question

Common-size statements​ ________. A. show the same percentages that appear in a horizontal analysis B. report dollar amounts and percentages C. allow the users to compare numbers in relative terms rather than absolute amounts D. create a dollar value bias

Answer 1

Answer: C. allow the users to compare numbers in relative terms rather than absolute amounts

Step-by-step explanation:

By expressing every item as a percentage of sales or revenue, users of these statements are able to compare figures on a relative term. With the relativity being related to the aforementioned sales or revenue.