The base amount in preparing component percentages for an income statement is usually which of the following?
A)Income from operations.
B)Gross profit.
C)Net income.
D)Net sales.

Question

Quizplus · Accepted Answer

The base amount in preparing component percentages for an income statement is usually Net Sales, since it represents the total revenue earned during a period of time. This allows for analysis of each expense and profit item as a percentage of total sales, providing useful insights into the company's financial performance.

The Base Amount in Preparing Component Percentages for an Income