Common size statements are presented as percentages to promote comparisons between different size companies. This statement is true.
Common size income statement is an income statement where each line item in the statement is expressed in the form of a percentage of value of the sales or revenue.
They are used for vertical analysis where the percentage of the base figure is represented in the statement.
On the other hand:
Common size financial statement helps in analyzing and comparing the performance of the company over the time period with a varying sales figure. The common size percentages are then compared to the competitors for determining the performance of the company relative to the industry.
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