A common size income statement:
A)uses the same dollar amount of net sales for each year.
B)expresses items as a percentage of net sales.
C)makes comparisons between years more difficult.
D)is useful in estimating the impact of inflation.

Question

Quizplus · Accepted Answer

A common size income statement expresses each line item as a percentage of net sales, allowing for easier comparison across different periods or companies.

A Common Size Income Statement