On a common-size balance sheet each item is expressed as a percentage of:
A)stockholders' equity.
B)common stock.
C)common shares outstanding.
D)total assets.

Question

Quizplus · Accepted Answer

A common-size balance sheet is a financial statement that presents all balance sheet items as a percentage of total assets. This helps to analyze the composition of assets and liabilities in a company's financial structure. Expressing items as a percentage of stockholders' equity, common stock, or common shares outstanding would not provide a comprehensive view of the financial health of the company.

On a Common-Size Balance Sheet Each Item Is Expressed as a Percentage