In a common size income statement to be used in vertical analysis, the 100% amount is
A)net income.
B)operating income.
C)gross profit.
D)net sales.

Question

Quizplus · Accepted Answer

In a common size income statement used for vertical analysis, the 100% amount is typically assigned to net sales, and all other items on the statement are expressed as a percentage of net sales. This allows for easy comparison of the relative sizes of different items on the income statement, regardless of the overall size of the company. So, the correct answer is D, net sales.

In a Common Size Income Statement to Be Used in Vertical