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Basic Question 11 of 11
Sales in a common-size income statement are usually stated as ______.
B. a percentage of net income
C. a percentage of gross profit
A. 100%
B. a percentage of net income
C. a percentage of gross profit
User Contributed Comments 8
| User | Comment |
|---|---|
| Bibhu | Tricky question. Please look into the notes for the explanations. |
| accounting | i think 100% is saying as a percentage |
| o123 | accounting...common size I/S is stated as a percentage of sales... sale are 100% of sales! |
| surob | I wish all questions were simle as this one. |
| bahodir | you wish |
| eb2568 | surob: yes, i wish they were all as easy as well! however, if that was the case, the cfa designation would hold very little merit and thus we all would probably be wasting our time working towards it. but yes, it would be a nice surprise on test day! |
| copus | sales = revenue. Top of the line on the income statement. Nothing comes before it and therefore the answer has to be 100%. |
| thegeneral101 | its one of those thats so simple its hard...makes you double check before you answer. |
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Edward Liu
Learning Outcome Statements
evaluate a company's financial performance using common-size income statements and financial ratios based on the income statement
CFA® 2024 Level I Curriculum, Volume 2, Module 2.