On a Common-Size Balance Sheet, Common Stock Is Shown as a Percentage

question 99

Multiple Choice

On a common-size balance sheet, common stock is shown as a percentage of

• A)total liabilities.
• B)total assets.
• C)current liabilities.
• D)total stockholders' equity.

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to cover its interest expenses with its earnings before interest and taxes.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that is financed by stockholders' equity.

Total Liabilities

The combined amount of a company's short-term and long-term debts, representing claims against the company's assets by outsiders.