Which of the Following Is True About a Common Size

question 88

Multiple Choice

Which of the following is true about a common size balance sheet?

• A) The assets, liabilities, and equities are reported at its market value.
• B) The assets, liabilities, and equities are reported as a percentage of common stock.
• C) The assets, liabilities, and equities are reported as a percentage of total assets.
• D) The assets, liabilities, and equities are arranged in the alphabetical order.
• E) The assets, liabilities, and equities are reported as a percentage of the assets, liabilities, and equities of a competing firm.

---

Definitions:

Supply Function

A mathematical relationship that describes the quantity of a good or service that producers are willing to sell at various prices.

Demand Function

A mathematical equation representing the relationship between the quantity demanded of a good and factors affecting its demand, such as price.

Inverse Demand

A representation of demand that expresses price as a function of quantity demanded, contrary to the typical demand function.

Inverse Supply

A concept in economics that describes a situation in which the supply of a good decreases as its price decreases, opposite to the normal supply behavior.