Question

12. in conducting a common-size balance sheet analysis, every account on the balance sheet is divided by a. its corresponding base year balance sheet item. b. total assets minus current assets. c. net sales or revenues. d. total liabilities. e. total liabilities and equity. f. none of the above.

Answer 1

The correct answer to your question is option A. In conducting a common-size balance sheet analysis, every account on the balance sheet is divided by its corresponding base year balance sheet item.