The following information is taken from the financial statements of a company for the current year:

-Use the information above to answer the following question.On a common size income statement for the year,what is the percentage that would be shown next to the dollar amount of sales revenue?
A) 100%
B) 14%
C) 60%
D) Cannot be determined

Question

The following information is taken from the financial statements of a company for the current year:
 
-Use the information above to answer the following question.On a common size income statement for the year,what is the percentage that would be shown next to the dollar amount of sales revenue?
A) 100% 
B) 14% 
C) 60% 
D) Cannot be determined

Quizplus · Accepted Answer

On a common size income statement, sales revenue is always represented as 100% because all other items are expressed as a percentage of sales.

The Following Information Is Taken from the Financial Statements of a Company