On a common-size statement of financial position, all _____ accounts are shown as a percentage of _____.
A) Income; total assets.
B) Liability; net income.
C) Asset; sales.
D) Liability; total assets.
E) Equity; sales.

Question

Quizplus · Accepted Answer

On a common-size statement of financial position, all liability accounts (as well as assets and equity accounts) are shown as a percentage of total assets. This allows for easier comparison of financial statements across different companies regardless of size.

On a Common-Size Statement of Financial Position, All _____ Accounts