In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to which of the following?
Options:
1
10
100
1000
Correct Answer:
100
Explanation:
The correct answer is option 3- 100.
In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to 100 and then for individual item percentage is calculated taking 100 as a base.
