The Income Statement Provides Information for Assessing the Operating Profitability

Multiple Choice

The income statement provides information for assessing the operating profitability of a firm.One tool used for analysis is the common-size income statement that expresses

A) each expense and net income as a percentage of revenues.
B) each revenue and net income as a percentage of expenses.
C) each expense and net income as a percentage of total assets.
D) each expense and net income as a percentage of shareholders' equity.
E) each revenue and net income as a percentage of shareholders' equity.