Which is an appropriate method of preparing a common - size cash flow statement?
A) Show each line item on the cash flow statement as a percentage of total assets.
B) Show each line item on the cash flow statement as a percentage of net revenue.
C) Show each cash inflow on the cash flow statement as a percentage of total cash outflows
D) Show each line item on the cash flow statement as a percentage of total liabilities

Question

Quizplus · Accepted Answer

A common-size cash flow statement is typically prepared by expressing each line item as a percentage of net revenue, allowing for easier comparison across periods or companies.

Which Is an Appropriate Method of Preparing a Common -