Question

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.

• A. Comparative statements
• B. Common size statements
• C. Cash flow statements
• D. None of these

Answer 1

The correct option is B

Common size statements

Common size statements 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.