In a common-sized balance sheet,each item is shown as a percentage of
A)common stockholders' equity
B)stockholders' equity
C)total liabilities
D)total assets

Question

Quizplus · Accepted Answer

In a common-sized balance sheet, each item is shown as a percentage of total assets, making it easier to compare the relative size of different assets and liabilities. This allows for a more thorough analysis of the company's financial health and the composition of its asset and liability structure.

In a Common-Sized Balance Sheet,each Item Is Shown as a Percentage