Explain why common-sized financial statements are a convenient way to compare financial statement items within the same period, between periods, and between competing companies.
A) Common-sized financial statements express each item as a percentage of total assets, allowing for easy comparison.
B) Common-sized financial statements include additional non-financial metrics, making them difficult to compare.
C) Common-sized financial statements provide absolute values for each financial statement item, making comparison challenging.
D) Common-sized financial statements use nominal values for each financial statement item, facilitating comparison.