MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Need for Analysis of Financial Information

In common siz...

Question

In common size Balance Sheet , total of assets and liabilities is assumed to be equal to ________.

A

Inter‐firm comparison

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Ratio Analysis

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Intra‐firm comparison

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

Inter‐industry comparison

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Intra‐firm comparison

In common size Balance Sheet , total of assets and liabilities is assumed to be equal to 100

Suggest Corrections

thumbs-up

1

Similar questions

Q. Inter-firm comparison becomes difficult with the help of financial analysis.

Q. Objective Type Questions :
State whether following statements are true or false :

Ratio Analysis is useful for inter-firm comparison.

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

Particulars	Aditya Ltd. Rs.	Anjali Ltd. Rs.
I. Equity and Liabilities
a) Equity share capital	6,00,000	8,00,000
b) Reserves and surplus	3,00,000	2,50,000
c) Current liabilities	1,00,000	1,50,000
Total	10,00,000	12,00,000
II. Assets
a) Fixed assets	4,00,000	7,00,000
b) Current assets	6,00,000	5,00,000
Total	1,00,0000*	12,00,000

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

Q. Comparative statement when prepared for comparing the enterprise's financial statements with that of another enterprise, is known as Inter-firm comparison.

Q. Total assets of a firm is Rs. 1,50,000, Capital amounted to Rs.70,000, total outside liabilities would be _________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Analysing Financial Information

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Need for Analysis of Financial Information

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon