1. Which one of the following is NOT true of common-size statements of financial position?

   		Each asset and liability item on the statement of financial position is standardised by dividing it by total assets.
   		Statement of financial position accounts are represented as percentages of total assets.
   		Each asset and liability item on the statement of financial position is standardised by dividing it by sales.
   		Common-size financial statements allow us to make meaningful comparisons between the financial statements of two companies that are different in size.