Which of the following statements is false?
A)Common-size balance sheets allow for comparison of firms with different levels of total assets by introducing a common denominator.
B)The common-size balance sheet reveals the composition of assets within major categories.
C)Each item on a common-size balance sheet is expressed as a percentage of sales.
D)The common-size balance sheet reveals the capital and the debt structure of the firm.

Question

Quizplus · Accepted Answer

Each item on a common-size balance sheet is expressed as a percentage of total assets, not sales.

Which of the Following Statements Is False