Common Size Financial Statements Represent All Figures on the Financial

question 12

Multiple Choice

Common size financial statements represent all figures on the financial statements

• A) in inflation adjusted dollars from a base year.
• B) as if all companies being compared had the same total revenue.
• C) as if all companies being compared had the same total assets.
• D) as a percentage of either sales or total assets.

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Definitions:

Credit Balance

A situation in an account where the total credits exceed the total debits, indicating a positive balance.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.

Journal Entry

A record in accounting that notes the details of a financial transaction in the ledger.

Organization Chart

A visual representation that shows the hierarchical structure of an organization and the relationships and relative ranks of its parts and positions/jobs.