Asked by Michelle Uzoukwu on May 05, 2024

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A comparative common-size balance sheet will help to highlight significant changes in the components of the balance sheet from year to year.

Comparative Common-Size Balance Sheet

A balance sheet that presents financial figures as percentages of a total in order to facilitate year-over-year and company-to-company comparisons.

Significant Changes

Important alterations that can have a substantial impact on a company's operations, financial performance, or strategy.

Balance Sheet Components

The major sections of a balance sheet, typically including assets, liabilities, and shareholders' equity.

  • Understand the structure and components of a company's balance sheet.
  • Understand the importance of variations in financial statement numbers across different periods.
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Zybrea KnightMay 06, 2024
Final Answer :
True
Explanation :
A comparative common-size balance sheet converts each line of the balance sheet to a percentage of total assets, making it easier to see changes in the composition of assets, liabilities, and equity from one year to the next.