In a Common Size Financial Statement, Which of the Following

question 27

Multiple Choice

In a common size financial statement, which of the following is given a percentage of 100 percent?

• A) Total liabilities
• B) Net income
• C) Total assets
• D) Cost of goods sold

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Definitions:

Quantity Supplied

The level of a good or service that sellers are eager and able to provide for purchase at a set price over a given period.

Perfectly Price Inelastic

A market situation where the quantity demanded of a good does not change in response to changes in its price.

Total Income

The sum of all earnings obtained from work, investments, and other sources before any taxes or deductions.

Perfectly Price Elastic

Describes a situation where the quantity demanded or supplied changes infinitely in response to any change in price.