A statement that expresses each account as a percentage of sales is called a:
A) Common-size statement of financial position.
B) Common-size statement of comprehensive income.
C) Common-size statement of cash flows.
D) Ratio statement of comprehensive income.
E) Statement of ratio analysis.

Question

Quizplus · Accepted Answer

A common-size statement of comprehensive income expresses each account as a percentage of sales, which helps in analyzing the income statement by making it easier to compare with other companies regardless of size.

A Statement That Expresses Each Account as a Percentage of Sales