In a common size balance sheet, each asset on the balance sheet is expressed as a percentage of:
A) Total assets
B) Total liabilities
C) Net income
D) Total stockholders' equity

Question

Quizplus · Accepted Answer

In a common size balance sheet, each asset is expressed as a percentage of total assets. This allows for easier comparison between different companies or between different time periods for the same company. It also helps to identify which assets are a larger or smaller proportion of the total assets.

In a Common Size Balance Sheet, Each Asset on the Balance