An income statement in which each item expressed as percentage of Sale?
Correct answer: C. common size income statement
- A. Balance sheet
- B. income statement
- C. common size income statement
- D. All of the Above
Explanation
A common-size income statement expresses every income-statement item as a percentage of sales, making comparison between periods or businesses easier. A normal income statement presents amounts rather than converting each item to a sales percentage.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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