A corporation reported cash of $27,000,total assets of $461,000,and total equity of $157,895 on its balance sheet.Its common-size percent for cash equals:
A)17.1%.
B)58.6%.
C)100%.
D)5.86%.
E)1707%.

Question

Quizplus · Accepted Answer

The common-size percent for cash is calculated by dividing cash by total assets and multiplying by 100.

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

= ($27,000 / $461,000) x 100

= 0.0586 x 100

= 5.86%

Therefore, the correct answer is D) 5.86%.

A Corporation Reported Cash of $27,000,total Assets of $461,000,and Total