The___________ is a popular approach for evaluating profitability in relation to sales by expressing each item on the income statement as a percent of sales.
A) retained earnings statement
B) common-size income statement
C) profit and loss statement
D) source and use statement

Question

Quizplus · Accepted Answer

The common-size income statement expresses each item as a percentage of sales, making it a useful tool for evaluating profitability in relation to sales. The other options (retained earnings statement, profit and loss statement, source and use statement) do not involve expressing items as a percentage of sales.

The___________ Is a Popular Approach for Evaluating Profitability in Relation