Home › CUET UG › accountancy › Analysis of Financial Statements › In a common size statement, each item is express…
In a common size statement, each item is expressed as a percentage of:
Aa common base item
Bthe previous year's figure
Ctotal cash flow
Dthe base year's figure
Answer & Solution
Correct answer: A. a common base item
In a common size statement every item is shown as a percentage of a common base item, bringing figures to a common scale.
Related questions
Debt-Equity Ratio is calculated asIf Net Profit is Rs 50,000 on Sales of Rs 5,00,000, Net Profit Ratio isQuick (Acid Test) Ratio EXCLUDES which item from current assets?Current Ratio is calculated asIn a common size statement of profit and loss, the various items are usually expressed as Financial statement analysis is best described as a:Government agencies and economists use financial statement analysis mainly for:Horizontal analysis is so named because it: