When preparing common-size analysis of a statement of income,the base is normally
A)Net income.
B)Operating expenses.
C)Revenues.
D)Cost of goods sold.

Question

Quizplus · Accepted Answer

The base for common-size analysis of a statement of income is typically revenues, as this allows for the comparison of individual expense categories as a proportion of total revenue. This analysis can show how effective a company is at controlling its costs and maximizing its revenue.

When Preparing Common-Size Analysis of a Statement of Income,the Base