Question:

In ‘Common size income statement’ each item is expressed as a percentage of ____.

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Common size statements standardize financial data for easier comparison across time and businesses.
Updated On: Jul 14, 2025
  • Total Income
  • Total Expenses
  • Profit After Tax
  • Revenue from Operations
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The Correct Option is D

Solution and Explanation

In a Common Size Income Statement, every item is represented as a percentage of Revenue from Operations (Net Sales). This helps in analyzing the trend or comparison among companies by eliminating size differences.
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