A balance sheet that displays only component percentages is called a
A) segmented balance sheet.
B) common-size balance sheet.
C) condensed balance sheet.
D) comparative balance sheet.

Question

Quizplus · Accepted Answer

A common-size balance sheet displays all accounts as a percentage of a common base amount (usually total assets). It is used to compare financial statements of different sized companies or to track changes within a single company over time. Segmenting and condensing refer to formatting choices, while comparative refers to comparing financial statements over multiple periods.

A Balance Sheet That Displays Only Component Percentages Is Called