A Common Size Income Statement Would Typically Be Prepared by Dividing

Multiple Choice

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 accounts 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.