Question

On common size balance sheets, Company A's inventory is 8% and Company B's inventory is 14%. What do just these two percentages tell you?

Answer 1

On common-size balance sheets, Company B is better at turning its stock than Company A.The reason, that organization B has an excessive stock turnover ratio is the stock of the employer is properly controlled than the employer A. sales might be much less in agency A.

A balance sheet gives you a photograph of your enterprise's monetary role at a given point in time. along with an earnings declaration and a cash float announcement, a balance sheet can assist enterprise owners to evaluate their organization's financial status.

In financial accounting, a balance sheet is a summary of the economic balances of a character or employer, whether or not it be a sole proprietorship, a business partnership, an organization, a personal limited enterprise, or a different corporation consisting of authorities or now not-for-earnings entity.

A balance sheet affords a picture of a business' fitness at a factor in time. it's far a precis of what the enterprise owns (assets) and owes (liabilities). stability sheets are normally organized at the close of an accounting period together with month-stop, sector-stop, or year-stop.

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