A common-size balance sheet expresses all balance sheet items
A) as a percentage of Current Assets.
B) as a percentage of Fixed Assets.
C) as a percentage of Total Assets.
D) as a percentage of Net Income.
E) as a percentage of Sales.

Question

Quizplus · Accepted Answer

A common-size balance sheet expresses all balance sheet items as a percentage of Total Assets. This allows for easier comparison between companies of different sizes or within a company over time.

A Common-Size Balance Sheet Expresses All Balance Sheet Items