The denominator used when calculating a common size income statement is ________.
A)total sales
B)total liabilities
C)total expenses
D)total assets

Question

Quizplus · Accepted Answer

The denominator used when calculating a common size income statement is total sales. This approach standardizes the income statement by expressing all line items as a percentage of total sales, allowing for easier comparison across periods and companies.

The Denominator Used When Calculating a Common Size Income Statement