- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 21. Financial Analysis Techniques
- Subject 1. Analysis Tools and Techniques
CFA Practice Question
Common-size income statements display each item as a percentage of ______, while common-size balance sheets display each item as a percentage of ______.
B. sales; total assets
C. sales; total equity
A. net income; total equity
B. sales; total assets
C. sales; total equity
Correct Answer: B
The common-size income statement lists all items as a percentage of net sales, while on the common-size balance sheet, total assets equal 100% and each item is displayed as a percentage of total assets.
User Contributed Comments 3
| User | Comment |
|---|---|
| Yrazzaq88 | If you get this wrong, you should give up on life. |
| birdperson | hush now Yrazzaq88 |
| Kevdharr | Ha.. I got it right. So I guess there is still hope. |