A Financial Statement That Shows Each Item as a Percentage

question 84

Multiple Choice

A financial statement that shows each item as a percentage of one key item on the statement is referred to as:

• A) benchmarking.
• B) common-size statement.
• C) horizontal analysis.
• D) statement of cash flows.

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Definitions:

Revaluation Method

An accounting strategy used to adjust the book value of a fixed asset to reflect its current market value.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines developed by the International Accounting Standards Board, providing uniform financial statement reporting.

Tangible Long-Lived Assets

Physical assets that are used in the operations of a business, have a useful life of more than one year, and are not intended for resale.

Nonmonetary Exchange

Transactions in which businesses or individuals trade goods or services without the use of money or monetary units.