In preparing a common-size balance sheet, you express all account balances as a percentage of
A)total stockholders' equity.
B)total liabilities.
C)total assets plus total liabilities minus stockholders' equity.
D)total assets.

Question

Quizplus · Accepted Answer

In preparing a common-size balance sheet, all account balances are expressed as a percentage of total assets. This helps to analyze the composition and changes in the assets of a company over time.

In Preparing a Common-Size Balance Sheet, You Express All Account