Asked by Krystina Marschall on May 07, 2024
Verified
On a common-sized income statement, 100% is the
A) net cost of goods sold
B) net income
C) gross profit
D) sales
Common-sized Income Statement
An income statement in which each line item is expressed as a percentage of sales revenue, allowing for easy comparison across periods or companies by standardizing the scale.
- Gain insight into the principles and utilization of common-sized financial statements.
Verified Answer
MJ
Montana JonesMay 08, 2024
Final Answer :
D
Explanation :
On a common-sized income statement, each line item is expressed as a percentage of sales. Therefore, 100% represents the total sales figure for the period.
Learning Objectives
- Gain insight into the principles and utilization of common-sized financial statements.
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