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

Question

Quizplus · Accepted Answer

A common-size balance sheet shows the items of a balance sheet as a percentage of total assets or total liabilities and equity. This allows for easy comparison between companies and identifies any differences in their asset or liability composition. It is a form of vertical analysis, which examines the relative proportions of each line item on the balance sheet. Benchmarking and horizontal analysis may also use this type of table, but the question specifically asks for the name of the table that lists items in both dollars and percentages.

A Table That Lists Items of a Balance Sheet in Dollars