The formula for preparing a common-size income statement is a. $\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Net Sales Revenue}}$

b.$ \frac{\text{Individual Revenue or Expense Account Balance}}{\text{Net Income}}$

c.$\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Operating Income }} $

d.$\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Gross Profit}}$

Question

The formula for preparing a common-size income statement is a.  $\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Net Sales Revenue}}$

b.$ \frac{\text{Individual Revenue or Expense Account Balance}}{\text{Net Income}}$

c.$\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Operating Income }} $

d.$\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Gross Profit}}$

Quizplus · Accepted Answer

The formula for preparing a common-size income statement is a.

\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Net Sales Revenue}}

b.

\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Net Income}}

c.

\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Operating Income }}

d.

\frac{\text{Individual Revenue or Expense Account Balance}}{\text{Gross Profit}}

The Formula for Preparing a Common-Size Income Statement Is A \frac{\text{Individual