On a Common-Size Income Statement,net Income Should Be Stated as a Percentage

question 43

Multiple Choice

On a common-size income statement,net income should be stated as a percentage of:

• A)gross margin.
• B)total assets.
• C)net sales.
• D)current assets.
• E)None of the answer choices is correct.

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Definitions:

Accounting Record

Documented evidence of financial transactions, used to track, report, and audit financial movements.

Short-term Speculation

The practice of buying and selling securities, commodities, or other financial instruments with the aim of profiting from price fluctuations over a short period.

Purchase

This term relates to the process of acquiring goods or services in exchange for money, encompassing a wide range of consumer and business transactions.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, not yet realized through selling.