A common-size statement of comprehensive income is deﬁned as a ﬁnancial statement wherein all items are expressed as a percentage of:
A) Their prior year's value.
B) Their projected value.
C) Their 5-year average value.
D) Total assets.
E) Sales.

Question

Quizplus · Accepted Answer

A common-size statement of comprehensive income expresses all items as a percentage of sales. This allows for the easy comparison of the relative importance of different items on the income statement.

A Common-Size Statement of Comprehensive Income Is Deﬁned as a ﬁNancial