Common-sized balance sheets
A) show data for companies in the same industry.
B) show data for companies with approximately the same amount of assets.
C) show each balance sheet account as a percentage of total sales.
D) show each balance sheet account as a percentage of total assets.

Question

Quizplus · Accepted Answer

Common-sized balance sheets show each balance sheet account as a percentage of total assets. This allows for easier comparison of companies of different sizes and industries, as it standardizes the data based on the proportion of assets held by each company.

Common-Sized Balance Sheets