A common-size balance sheet helps financial managers determine:
A)which customers are paying on a timely basis.
B)if costs are increasing faster or slower than sales.
C)if changes are occurring in a firm's mix of assets.
D)if a firm is generating more or less sales per dollar of assets than in prior years.
E)the rate at which the firm's dividends are changing.

Question

Quizplus · Accepted Answer

A common-size balance sheet expresses each item as a percentage of total assets, allowing financial managers to analyze changes in the firm's asset mix over time.

A Common-Size Balance Sheet Helps Financial Managers Determine