The most frequent method of adjusting balance sheets to a common-size basis is to divide each of the accounts by total assets, expressing each account as a percentage of total assets.

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This is true. Converting balance sheets to a common-size basis involves dividing each account by total assets and expressing the amount as a percentage of total assets. This allows for easier comparison across companies and over time.

The Most Frequent Method of Adjusting Balance Sheets to a Common-Size