On a common-size income statement,interest expense is shown as a percentage of
A)Operating income.
B)Net sales revenue.
C)Net income.
D)Gross profit.

Question

Quizplus · Accepted Answer

Interest expense is typically shown as a percentage of net sales revenue on a common-size income statement. This allows for an evaluation of how much of the sales revenue is being used to pay off debt and can provide insights into a company's debt management and financing activities.

On a Common-Size Income Statement,interest Expense Is Shown as a Percentage