Common Size Financial Statements

Q.

These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.

1. None of these

2. Cash flow statements

3. Common size statements

4. Comparative statements

Q.

This analysis helps to understand the impact of each item in the financial statement and its contribution to the resulting figure.

1. Comparative statements

2. Common size statements

3. Cash flow statements

4. None of these

Q.

Which of the following statements are true?

1. Common-size balance sheet shows relative value of the various items.

2. In the common size income statement, each product is represented as a percentage of the net sales figure.

3. Both :

   Common-size balance sheet shows relative value of the various items.

   In the common size income statement, each product is represented as a percentage of the net sales figure.

4. None of these

Q.

Apply common size analysis to ABC Company's selling expenses given the following information: Selling expenses = Rs. 60, 000; Revenue from Operations = Rs. 2, 50, 000; Total assets = Rs. 4, 25, 000; Total liabilities = Rs. 3, 00, 000.

1. 50%

2. 25%

3. 24%

4. 36%

Q. Non current assets in 31.3.2016 is 21, 30, 000 and in 31.3.2017 is 36, 30, 000. What is the absolute change and percentage change?

1. None of these

2. Comparative statements

3. Common size statements

4. Cash flow statements

Q.

A ___displays all items as percentages of a common base figure rather than as absolute numerical figures

1. Comparative statements

2. Common size statements

3. Cash flow statements

4. None of these

Q.

___ allows you to compare the financial statements of large companies with the financial statements of smaller companies, because you are comparing percentages instead of rupees.

1. Comparative income statements

2. Common size income statements

3. Comparative balance sheet

4. Common size balance sheet

Q.

Common size statement analysis is also known as ___ analysis.

1. Vertical

2. Horizontal

3. All of these

4. Intra firm

Q.

Which statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet?

1. Actual

2. Potential

3. Net

4. None of these

Q.

This analysis is also known as ‘Vertical analysis’.

1. Common size statements

2. Cash flow statements

3. None of these

4. Comparative statements