To Create a Common-Size Income Statement for a Firm One

question 51

Multiple Choice

To create a common-size income statement for a firm one would typically divide each time on the income statement by:

• A)total assets.
• B)total equity.
• C)net sales.
• D)net income.

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Definitions:

Range of Information

The spectrum or variety of data and facts available on a particular subject or for a specific purpose.

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an action, concept, or project.

Main Idea

The central or most important point that an author wants to communicate to the reader, around which the rest of the text is organized.

Major Points

The most important or central ideas, arguments, or pieces of information in a discussion, presentation, or text.