Asked by Miranda Wilkerson on Apr 25, 2024

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In a common size cash flow statement,all items are expressed as a percentage of

A) sales.
B) total assets.
C) net income.
D) total equity.

Common Size Cash Flow Statement

A financial statement that presents all line items as a percentage of total cash inflows, facilitating comparison across periods or companies.

Net Income

The amount of money that remains after all expenses, taxes, and costs have been subtracted from a company's total revenue.

Total Equity

The total net worth of a company, calculated as the difference between total assets and total liabilities.

  • Acquire knowledge on the formulation and examination of common size financial statements.
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VW
Vanessa Wilson7 days ago
Final Answer :
A
Explanation :
In a common size cash flow statement, all items are expressed as a percentage of sales. This helps in analyzing the cash flow in relation to sales, which can provide insights into the company's financial performance and efficiency. It also helps in comparing the cash flow of different companies or industries regardless of their size or scale.