When preparing common-size statements, items on the balance sheet are generally stated as a percentage of _________________ and items on the income statement are generally stated as a percentage of __________________
A) Total Assets; Net Income
B) Total Assets; Revenue
C) Total Owner's equity; Revenue
D) Net income; Total (Long-term debt + Owner's equity)

Question

Quizplus · Accepted Answer

When preparing common-size statements, items on the balance sheet are generally stated as a percentage of Total Assets and items on the income statement are generally stated as a percentage of Revenue.

When Preparing Common-Size Statements, Items on the Balance Sheet Are