As a New Employee in the Accounting Department of the Education

question 20

Essay

As a new employee in the accounting department of The Education Company, you noticed that the company's financial software generates common-size financial statements.However, your supervisor stated that the common-size statements are not of importance.The statements are in fact trashed and never reviewed by upper management.Write a memo to your supervisor describing common-size financial statements (balance sheet and income statement) and explain how these statements might be utilized.