Answer (B) is correct . On a common-size balance sheet, all amounts are converted to percentages with total assets representing 100%. Of course, if the balance sheet is in balance, the total of liabilities plus stockholders’ equity will also equal 100%.
Answer (A) is incorrect because Total current assets would be less than total assets, which is always 100%.
Answer (C) is incorrect because Total liabilities would be less than total assets, which is always 100%.
Answer (D) is incorrect because Total stockholders’ equity would be less than total assets, which is always 100%.
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