In a common size statement, the statement of ﬁnancial position may be expressed as a percentage of ____________ while the statement of comprehensive income may be expressed as a
Percentage of ____________.
A) liabilities plus equity; net income
B) assets; net income
C) sales; liabilities plus equity
D) liabilities plus equity; sales
E) liabilities; sales

Question

Quizplus · Accepted Answer

In a common size statement, the statement of ﬁnancial position may be expressed as a percentage of ____________ while the statement of comprehensive income may be expressed as a
Percentage of ____________.

The statement of comprehensive income, on the other hand, is expressed as a percentage of sales. This allows for a clearer understanding of how much of the revenue is being converted into profits and how much is being spent on expenses. Therefore, the correct answer is D - liabilities plus equity for the statement of financial position and sales for the statement of comprehensive income.

In a Common Size Statement, the Statement of ﬁNancial Position