In preparing a common-size income statement,you express all revenue and expense account as a percentage of
A)Net income.
B)Operating income.
C)Gross profit.
D)Net sales revenue.

Question

Quizplus · Accepted Answer

In a common-size income statement, all revenue and expense accounts are expressed as a percentage of net sales revenue. This allows for easy comparison of the relative size and importance of each item on the income statement. Net sales revenue is chosen because it represents the total revenue generated by the company, excluding any discounts or returns.

In Preparing a Common-Size Income Statement,you Express All Revenue and Expense