Explain the following :

Common size balance sheet.

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Solution

It is a statement that reflects the items of the Balance Sheet as a percentage of some common bases (total assets or total liabilities). It helps in easy analysis of performance during various years (intra-firm comparison) or between different companies (inter-firm comparison).

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Similar questions

Which of the following is the base for common size balance sheet?

Which of the following would a company use as the base amount when completing a common size analysis on a balance sheet?

Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:

*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.

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