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 expresses each account as a percentage of a base value, in this case sales. The correct option for this type of statement is the common-size statement of comprehensive income, as it presents all components of a company's income statement as a percentage of sales. The other options are incorrect and would not accurately describe the type of statement being referred to.

A Statement That Expresses Each Account as a Percentage of Sales