A table that lists items of a balance sheet in dollars and percentages for two companies would be
A)used for vertical analysis.
B)a common-size balance sheet.
C)used for benchmarking.
D)used for horizontal analysis.

Question

Quizplus · Accepted Answer

A common-size balance sheet expresses each item as a percentage of total assets, which allows for easy comparison between companies of different sizes.

A Table That Lists Items of a Balance Sheet in Dollars