A common- size analysis of the balance sheet is most likely to signal investors that the company
A) is using assets eﬃciently.
B) is becoming more liquid.
C) is becoming more leveraged.
D) has increased sale.

Question

Quizplus · Accepted Answer

A common-size analysis of the balance sheet shows the relationship between different balance sheet items and the total assets of the company. This analysis can help investors to see how efficiently the company is using its assets.

A Common- Size Analysis of the Balance Sheet Is Most