A Statement That Expresses the Income Statement Items as a Percent

question 150

Multiple Choice

A statement that expresses the income statement items as a percent of total sales is called:

• A)a percentage of sales income statement
• B)a cross-sectional income statement
• C)a common size income statement
• D)a ratio based income statement
• E)none of the above

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Definitions:

Capital Intensity Ratio

A measure of how much capital is required to produce one unit of output, indicating the extent of capital employed in production.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing the actual worth of these assets to the business.

Total Assets

The sum of all current and long-term assets owned by a company, reflecting the total resources at its disposal.

Internal Growth Rate

The maximum growth rate a company can achieve with its existing assets without having to finance growth with external equity or debt.