A corporation reported cash of $14,000 and total assets of $178,300. 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 is calculated by taking the specific item (in this case, cash) as a percentage of the total assets.

Common-size percent for cash = (Cash / Total assets) x 100

= ($14,000 / $178,300) x 100

= 0.0785 x 100

= 7.85%

Therefore, the answer is B) 7.85%.

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