A common size income statement would typically be prepared by dividing:
A)All items on income statement in Year t by their corresponding value in Year t-1
B)All items on income statement in Year t by their corresponding balance sheet account in Year t
C)All items on income statement in Year t by net income in Year t-1
D)All items on income statement in Year t by sales in Year t
Answer:D
A common size income statement would typically be prepared by dividing:
A)All items on income statement in Year t by their corresponding value in Year t-1 B)All items on income statement in Year t by their corresponding balance sheet account in Year t C)All items on income statement in Year t by net income in Year t-1 D)All items on income statement in Year t by sales in Year t