Common size income statements represent all figures on the income statement
A) as a percentage change from the previous year.
B) percentages of the current year's sales.
C) as a percentage of some benchmark figure.
D) as a percentage of total assets.

Question

Quizplus · Accepted Answer

Common size income statements convert all line items to percentages of sales, allowing for easier comparison across time periods and with other companies.

Common Size Income Statements Represent All Figures on the Income