A common-size income statement shows the firm's income and expense items as a percentage of ____.
A) stockholders' equity
B) net sales
C) industry averages
D) total assets

Question

Quizplus · Accepted Answer

A common-size income statement shows the firm's income and expense items as a percentage of its net sales. This allows for easy comparison of different firms' income statements, regardless of size.

A Common-Size Income Statement Shows the Firm's Income and Expense