Common-size balance sheets may be used for all of the following except
A)gaining insights into the nature of a company's operations.
B)analyzing a company's asset and financial structure.
C)determining how management assesses the risks a company faces.
D)learning about the underlying economics of an industry.

Question

Quizplus · Accepted Answer

Common-size balance sheets are primarily used to analyze a company's asset and financial structure, gain insights into the nature of a company's operations, and learn about the underlying economics of an industry. However, they are not typically used to determine how management assesses the risks a company faces, making choice C the correct answer.

Common-Size Balance Sheets May Be Used for All of the Following