CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Which of the following statements are true?
a. Common size balance sheet shows relative value of the various items.
b. In the common size income statement, each product is represented as a percentage of the net sales figure.
c. Common size income statements represents the various element as a percentage of the gross profit.

A
Both (a) and (b)
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Both (a) and (c)
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Both (b) and (c)
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
All of the above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B Both (a) and (b)
Common size statement, also known as component percentage statement, is a financial tool for studying the key changes and trends in the financial position and operational result of a company. Common size balance sheet shows relative value of the various items. In common size income statement, the item of expenditure are shown as percentage of the net sales.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Common Size Financial Statement
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon