On a common-size statement of ﬁnancial position, all _____ accounts are shown as a percentage of _____.
A) Income; total assets.
B) Liability; net income.
C) Asset; sales.
D) Liability; total assets.
E) Equity; sales.

Question

Quizplus · Accepted Answer

On a common-size statement of financial position, all liability accounts are shown as a percentage of total assets. This helps in analyzing the proportion of total assets that are financed through liabilities.

On a Common-Size Statement of ﬁNancial Position, All _____ Accounts