Which of the Following Is NOT True of Common-Size Income

question 82

Multiple Choice

Which of the following is NOT true of common-size income statements?

• A) Each income statement item is standardized by dividing it by total assets.
• B) Income statement accounts are represented as percentages of net sales.
• C) Each income statement item is standardized by dividing it by net sales.
• D) Common-size income statements analysis is a specialized application of ratio analysis.

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Definitions:

Semispinalis Cervicis

A muscle in the back of the neck that extends the cervical vertebrae, contributing to the movement and stabilization of the head.

Extends the Neck

Refers to muscles and movements that increase the distance between the chin and the chest, facilitating neck extension.

Spinalis Thoracis

A muscle in the back that is part of the erector spinae muscle group, helping to extend and stabilize the thoracic spine.

Longissimus Thoracis

A muscle in the back that helps extend, rotate, and laterally flex the spine.