Question

In a common-sized income statement, 100% is the
a.gross profit.
b.net cost of goods sold.
c.sales.
d.net income.

Answer 1

Answer:

c. sales

Explanation:

Total revenue and net expenditures are reported in the income statement.  If the total income is more than the total expenditure then the company earns net income And if the total income is less than the total expenditure then the company has a net loss

This net income or net loss would be expressed in the retained income account statement.

In the common size income statement, each item would be expressed in terms of revenue, i.e. the 100% is the sale and the other items would depend on its amount.