The main difference between financial reports and financial statements is that a financial report is just that, any report about financial matters. The reports have to do with the transactions that have financial effects. Some financial reports are private to the company, while others may be released to the public. A financial statement is a form of a report as well. The financial statements have more to do with a series of financial reports that come together for the bigger picture. Financial statements let you know where a business stands in the market. The main difference between a comparative financial statement and a common size financial statement are that comparative financial statement utilize horizontal analysis, while common size financial statements use vertical analysis. On the common size income statement the item that is set at 100% is the revenue, this is because it is the base rate. On the common size balance sheet the items that are valued at 100% are total assets, and total liability/ equity. These items are set at 100% because they are the sum of all the other items on the balance sheet.