To create a common size balance sheet, ____________ all items on the balance sheet by ____________.

A) multiply; owners' equity
B) multiply; total assets
C) divide; owners' equity
D) divide; total assets
E) multiply; debt

Common Size Balance Sheet

A financial statement that presents all items as percentages of a common base figure, such as total assets, facilitating comparison across time and companies.

Total Assets

The sum of all assets owned by an entity, encompassing both current and non-current assets, and used in determining a company's financial health.

Owners' Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing the owner's claim against the company's resources.