On a common-size income statement, income taxes are shown as a percentage of
A)operating income.
B)net sales revenue.
C)net income.
D)gross profit.

Name: On a common-size income statement, income taxes are shown as a percentage of A)operating income. B)net sales revenue. C)net income. D)gross profit.
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Question

Quizplus · Accepted Answer

On a common-size income statement, all items are typically shown as a percentage of net sales revenue. This allows for easier comparison across periods and companies by standardizing the figures.

On a Common-Size Income Statement, Income Taxes Are Shown as a Percentage