Question

In: Accounting

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

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

Solutions

Expert Solution

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


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