On a common-size balance sheet,current liabilities should be stated as a percentage of:
A)net sales.
B)total assets.
C)total liabilities.
D)total long term liabilities.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Current liabilities should be stated as a percentage of total assets on a common-size balance sheet. This allows for easy comparison of the relationship between the short-term obligations and the total resources available to cover them.

On a Common-Size Balance Sheet,current Liabilities Should Be Stated as a Percentage