In a common-size Income Statement, selling expenses are 55%. This means that they are 55% of:
A)net income.
B)net sales.
C)gross profit.
D)net profit.

Question

Quizplus · Accepted Answer

Selling expenses are calculated as a percentage of net sales in a common-size income statement, so the correct answer is B. The other options (net income, gross profit, net profit) are not used as the base for calculating selling expenses in a common-size income statement.

In a Common-Size Income Statement, Selling Expenses Are 55