On a Common-Size Income Statement, Each Item Is Expressed as a Percentage

question 68

Multiple Choice

On a common-size income statement, each item is expressed as a percentage of:

• A)gross margin.
• B)operating income.
• C)total revenues.
• D)net income.

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Definitions:

Financial Statement Analysis

A method used to understand the financial health and operating performance of a business through the review of its financial statements, including balance sheets, income statements, and cash flow statements.