Common-size income statements represent all figures on the income statement [blank].
A)as a percentage change from the previous year
B)as percentages of the current year's sales
C)as a percentage of some benchmark figure
D)as a percentage of total assets

Question

Quizplus · Accepted Answer

Common-size income statements represent all figures on the income statement as percentages of the current year's sales. This makes it easier to compare the performance of different companies, particularly of different sizes, since the figures are standardized based on sales. It also allows for analysis of trends over time within the same company.

Common-Size Income Statements Represent All Figures on the Income Statement