A common-size balance sheet shows the firm's assets and liabilities as a percentage of ____.
A) stockholders' equity
B) industry averages
C) total assets
D) net sales

Question

Quizplus · Accepted Answer

A common-size balance sheet shows the firm's assets and liabilities in percentage of total assets, making it easier to compare and analyze the proportions of different items on the balance sheet.

A Common-Size Balance Sheet Shows the Firm's Assets and Liabilities