On a common-size income statement, each item is expressed as a percentage of:
A)gross margin.
B)operating income.
C)total revenues.
D)net income.

Name: On a common-size income statement, each item is expressed as a percentage of: A)gross margin. B)operating income. C)total revenues. D)net income.
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Question

Quizplus · Accepted Answer

On a common-size income statement, each item is expressed as a percentage of the total revenues. This allows for easier comparison between companies of different sizes as it standardized the income statement.

On a Common-Size Income Statement, Each Item Is Expressed as a Percentage