On a common-size balance sheet each item is expressed as a percentage of:
A) current assets.
B) operating income.
C) total assets.
D) net income.

Question

Quizplus · Accepted Answer

A common-size balance sheet expresses each item as a percentage of total assets. This allows for easier comparison across companies and over time, as it shows the proportion of each item relative to the total size of the company's assets.

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