On a common-size balance sheet all accounts are expressed as a percentage of:
A)sales for the period.
B)the base year sales.
C)total equity for the base year.
D)total assets for the current year.
E)total assets for the base year.

Question

Quizplus · Accepted Answer

On a common-size balance sheet, all accounts are expressed as a percentage of total assets for the current year. This standardizes the balance sheet and allows for easier comparison across companies and time periods.

On a Common-Size Balance Sheet All Accounts Are Expressed as a Percentage