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

Question

Quizplus · Accepted Answer

Common size income statements show each component as a percentage of sales. This enables a comparison of the relative importance of each component to the overall revenue of the company, regardless of its absolute dollar value.

On Common Size Income Statements, Each Component in the Income