nathanroberts396 nathanroberts396

11-07-2020
Business

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Amy wants to know if inventory is increasing as a percentage of total assets. Which one of these statements most easily provides the information she is seeking

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Parrain Parrain

12-07-2020

Answer: C. Common-size balance sheet

Explanation:

A Common+size balance sheet is a variant of the normal Balance sheet and is used by companies for internal assessment. It works by making every item a percentage of total assets and then listing those Assets in the statement alongside the actual figures.

Amy can therefore use this to find out if Inventory is increasing as a percentage of total assets by comparing Common size statements from 2 different years.

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