Amy wants to know if inventory is increasing as a percentage of total assets.Which one of these statements most easily provides the information she is seeking?
A) Statement of cash flows
B) Balance sheet
C) Common-size balance sheet
D) Income statement

Question

Quizplus · Accepted Answer

The common-size balance sheet expresses each item as a percentage of total assets. By comparing the percentage of inventory over time, Amy can determine if inventory is increasing as a percentage of total assets. The other statements do not provide this specific information.

Amy Wants to Know If Inventory Is Increasing as a Percentage