On a Common Size Income Statement, All Items Are Shown

question 76

Multiple Choice

On a common size income statement, all items are shown as:

• A)percentages of net income
• B)percentages of total assets
• C)percentages of gross revenue
• D)percentages of gross profit

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Definitions:

Investment Centers

Parts of an organization with control over their own revenues, expenses, and investments, whose performance is measured by return on investment (ROI).

Responsibility Center

An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.

Department Manager

A position responsible for overseeing the operations, productivity, and personnel of a specific department within an organization.

Revenues

The cumulative financial gain acquired by transacting goods or services indispensable to an enterprise's principal undertakings.