A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet.Its common-size percent for cash equals:
A).0785%.
B)7.85%.
C)12.73%.
D)1273%.
E)7850%.

Question

Quizplus · Accepted Answer

Common-size percent for cash can be calculated by dividing cash by total assets and multiplying by 100.

Common-size percent for cash = (Cash/Total assets) x 100
= ($14,000/$178,300) x 100
= 0.0785 x 100
= 7.85%

Therefore, the correct choice is B, and 7.85% is the common-size percent for cash.

A Corporation Reported Cash of $14,000 and Total Assets of $178,300