Asked by Samantha Adams on May 16, 2024
Verified
In a common size balance sheet for 2012,total liabilities and equity are expressed as
A) 89.9%
B) 96.5%
C) 100.0%
D) 111.3%
Common Size Balance Sheet
A balance sheet in which all line items are expressed as a percentage of total assets to allow for easy comparison across periods and with other companies.
Total Liabilities And Equity
The sum of all financial obligations and ownership equity of a company, representing the total sources of funds used to finance its assets.
- Analyze the financial achievements of companies and compare these achievements by employing common-size and trend analysis techniques.
Verified Answer
MJ
Marcia JensenMay 20, 2024
Final Answer :
C
Explanation :
In a common size balance sheet, all items are expressed as a percentage of total assets for the same year. Since total liabilities and equity always equal total assets, the percentage for total liabilities and equity in 2012 would be 100.0%.
Learning Objectives
- Analyze the financial achievements of companies and compare these achievements by employing common-size and trend analysis techniques.