The formula used in preparing a common-size balance sheet is

Name: The formula used in preparing a common-size balance sheet is
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Question

Quizplus · Accepted Answer

A common-size balance sheet expresses each item as a percentage of total assets or total liabilities and equity. The formula used to calculate this is: (Item Amount / Total Assets or Liabilities and Equity) x 100. Therefore, choice A is the correct formula for preparing a common-size balance sheet.

The Formula Used in Preparing a Common-Size Balance Sheet Is