- 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
In a common-size statement, the balance sheet is expressed as a percentage of ______ while the income statement is expressed as a percentage of ______.
A. liabilities plus equity; net income
B. assets; net income
C. liabilities plus equity; sales
User Contributed Comments 3
| User | Comment |
|---|---|
| kalps | Liabilities plus qeuity gives you net total assets Income statement is expressed as a precentage of SALES |
| mickykumar | But the FRA curriculum page 232 reading 33 states that a common size balance sheets represents total assets. not net assets. |
| RAustin | L+E=A, nice trick question! |