A comparison of common-size income statements in consecutive years will show a change in profit margin, but not a change in revenues.

Name: A comparison of common-size income statements in consecutive years will show a change in profit margin, but not a change in revenues.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

A common-size income statement expresses each line item as a percentage of sales. Therefore, a change in profit margin will be reflected in the common-size income statement, but a change in revenues will not.

A Comparison of Common-Size Income Statements in Consecutive Years Will