Question

To prepare common-size financial statements, each line item needs to be calculated to a common-size percent. The formula for common-size percent is (_________) x 100.

Answer 1

In accounting, the formula for common-size percent is (Amount / Base amount) * 100.

What is a common size income statement?

This is a financial statement where every line item are expressed as a percentage of the value of sales in other to make analysis easier.

In this analysis, the percentage of the base is the ratio of the line item versus the total amount.

Thus, the formula for common-size percent is (Amount / Base amount) * 100.

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