In preparing a common-size income statement, you express all revenue and expense account as a percentage of
A)net income.
B)operating income.
C)gross profit.
D)net sales revenue.

Question

Quizplus · Accepted Answer

Common-size income statement expresses all revenue and expense accounts as a percentage of net sales revenue, which helps in comparing the financial performance of different companies regardless of their size.

In Preparing a Common-Size Income Statement, You Express All Revenue