On a common-size balance sheet,equipment should be stated as a percentage of:
A)net sales.
B)total assets.
C)total liabilities.
D)total long-term assets.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

On a common-size balance sheet, all items should be stated as a percentage of total assets. This allows for easy comparison between companies of different sizes and helps identify trends in the company's asset allocation over time. Therefore, equipment should also be stated as a percentage of total assets.

On a Common-Size Balance Sheet,equipment Should Be Stated as a Percentage