Question 1
Common-size statements are especially useful in comparing
◦ companies of the same size.
◦ supplemental information included in the corporate annual report.
◦ companies of different sizes.
◦ a company's performance across time.
Question 2
In preparing a common-size balance sheet, you express all account balances as a percentage of
◦ total assets plus total liabilities minus stockholders' equity.
◦ total liabilities.
◦ total stockholders' equity.
◦ total assets.