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TEA [102]
1 year ago
8

a corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. its common-size percent for cash equal

s: a) 0.0785%. b) 7.85%. c) 12.73%. d) 1273%. e) 7850%. group of answer choices
Business
1 answer:
34kurt1 year ago
4 0

B. 7.85% is the is its common-size percent for cash (14000÷178300)×100

Line items are shown as a percentage of a single chosen or common figure in a financial statement of common size. A balance sheet will contain different line items depending on the type of firm and the industry. Since all businesses in a given industry deal with the same kinds of transactions, the line items utilised for their balance sheets will typically be comparable.

It is simpler to study a company over time and evaluate it against its competitors when financial statements are created in a common size. One can identify trends that a raw financial statement might not reveal by using financial statements of a common size.

Learn more about common size percent here:

brainly.com/question/27406789

#SPJ4

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