In: Accounting
To create a common size balance sheet ____________ all items on the balance sheet by ____________.
1. |
multiply; owners equity |
|
2. |
multiply; total assets |
|
3. |
divide; owners equity |
|
4. |
divide; total assets |
|
5. |
multiply; debt |
answer : 4) divide; total assets
explanation
To create a common size balance sheet divide all items on balance sheet by total assets
for creating common size balance sheet , each item is divided by total assets .it displays the percentage of each item relating to the total assets