On common size income statements, each component in the income statement is represented as a percentage of:
A) Net income.
B) Sales.
C) Total assets.
D) Profit.

Question

Quizplus · Accepted Answer

On common size income statements, each component is represented as a percentage of sales, allowing for easy comparison and analysis of the relative importance of each item. This helps to identify trends and areas for improvement in the company's revenue and expenses.

On Common Size Income Statements, Each Component in the Income