In a Common Size Income Statement,each Item on the Income

question 47

Multiple Choice

In a common size income statement,each item on the income statement is expressed as a percentage of:

• A)net income.
• B)gross profit.
• C)total expenses.
• D)sales revenue.

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Definitions:

Limestone

A sedimentary rock composed mainly of calcium carbonate, typically formed from the skeletal fragments of marine organisms.

Shales

Fine-grained sedimentary rocks that can split into thin, parallel layers, composed mainly of clay minerals.

Siltstones

Fine-grained sedimentary rocks that consist predominantly of silt particles, smaller than sand grains but larger than clay, often formed in quiet water environments.

Lime Muds

Fine-grained sediments composed largely of calcium carbonate, typically formed in marine environments where organisms such as coral or foraminifera are prevalent.