Component Percentages Indicate the Relative Size of Each Item Included

question 101

Multiple Choice

Component percentages indicate the relative size of each item included in a total. Which of the following statements is true?

• A) Income statement items are expressed as a percentage of net income, while balance sheet items are expressed as a percentage of total assets.
• B) Income statement items are expressed as a percentage of net sales, while balance sheet items are expressed as a percentage of total assets.
• C) Income statement items are expressed as a percentage of net income, while balance sheet items are expressed as a percentage of net worth.
• D) Both income statement and balance sheet items are expressed as a percentage of net worth.

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Definitions:

Family

A social unit typically formed by relatives, either through blood, marriage, or adoption, that shares a household and responsibilities.

Globalized World

A world increasingly interconnected and interdependent through the exchange of goods, services, information, and culture.

Technologized World

A society or environment that is heavily influenced and shaped by modern technology, including communication, travel, and lifestyle.

Immigrant Communities

Social groups formed by individuals who have moved from one country to another, sharing a common national or cultural origin.