A common-sized balance sheet is prepared by expressing each asset as a percent of:
A) total current assets.
B) total assets.
C) total long-term assets.
D) total liabilities.

Question

Quizplus · Accepted Answer

A common-sized balance sheet expresses each asset as a percentage of total assets, making it easier to compare and analyze the relative proportions of different assets within the company. The other options (total current assets, total long-term assets, and total liabilities) would not provide a comprehensive picture of the company's asset composition.

A Common-Sized Balance Sheet Is Prepared by Expressing Each Asset