Many analysts use a common-size balance sheet, which expresses each balance sheet item as a percentage of total assets.

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Quizplus · Accepted Answer

This statement is true. A common-size balance sheet is a tool used by analysts to better understand the composition of a company's assets and liabilities. By expressing each item as a percentage of total assets, analysts can identify trends and patterns in the company's financial position over time.

Many Analysts Use a Common-Size Balance Sheet, Which Expresses Each