Component Percentages Indicate the Relative Size of Each Item Included

question 74

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 assets.
• D)Both income statement and balance sheet items are expressed as a percentage of net assets.

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Definitions:

Geographical Location

The specific, physical place where something exists, defined by its latitude and longitude or its place in a larger area.

Sole Proprietorships

A business structure where a single individual owns and runs the business, bearing sole responsibility for its debts and liabilities.

Corporations

Business entities that are legally separate from their owners, providing limited liability protection, and able to own assets and incur debt.

Partnerships

A legal and operational agreement between two or more parties to manage and operate a business jointly, sharing its profits and liabilities.