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A common size balance sheet: sets total assets equal to 100 and calculates all other accounts...

A common size balance sheet:

sets total assets equal to 100 and calculates all other accounts as a percentage of total assets

all of these answers

is useful for comparing your company to your industry

can help you determine where you’ve over- or under-invested in a particular asset
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Answer #1

Option B is correct: all of these answers

A common size balance sheet sets total assets equal to 100 and calculates all other accounts as a percentage of total assets. In other words, the other line items in the balance sheet are expressed as a percentage of total assets.

We can compare our company to our industry with a common size balance sheet analysis

We can determine whether we are over invested or under invested in a particular asset as the common size balance sheet gives how much is invested in each asset as a percentage of total assets.

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