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explain what it means to common-size a balance sheet. How is it done? Why is it...

explain what it means to common-size a balance sheet. How is it done? Why is it useful?

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Expert Solution

It is a kind of balance sheet which shows numeric value of assets,liabilities and capital along with their percentage values.This type of balance sheets are easily comparable.For example any percentage value of an individual asset can be compared with the total value of the assets,like wise any item on the balance sheet can be easily compared with their total percentage.

ekkarill92 answered 2 years ago
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