Which of the following tools uses ‘revenue from operations’ as a base figure to compare financial statements?

[0.88 marks]

Comparative balance sheet

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

Trend analysis

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

Common size income statement

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

Ratio analysis

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

Open in App

Solution

The correct option is C Common size income statement
Common size income statements are statements in which the individual elements of the financial statements of two or more years are placed and then converted into percentages by taking a common base.
A common size statement of profit and loss shows the relative efficiency in operating a business. It is a statement in which the amount of revenue from operations is taken as a base and assumed to be equal to 100.

Suggest Corrections

Similar questions

Q. Which of the following arguments in a financial function represents present value?

[0.88 marks]

Prepare a Comparative Statement of Profit & Loss from the following details :

$\begin{matrix} 31 - 03 - 2018 & 31 - 03 - 2017 Revenue from Operations & Rs. 30, 00, 000 & Rs. 20, 00, 000 Other Income (% of Revenue from Operations) & 15 % & 20 % Expenses (% of Operating Revenue) & 60 % & 50 % \end{matrix}$

Q. The common size income statement considers the revenue from operations as base. The percentage allocation for the base is

Prepare comparative statement of profit and loss from the following information :

$\begin{matrix} Particulars & 31st March, 2016 & 31st March,2015 Revenue from operation & Rs 16, 00, 000 & Rs 10, 00, 000 Cost of material consumed & 70 % of revenue from operations & 70 % of revenue from operations Other expenses & 5 % of revenue from operations & 5 % of revenue from operations Rate of tax & 50 % & 50 % \end{matrix}$

Q. If Operating Profit is defined as Revenue - Expenses and OPM (Operating Profit Margin) as the Operating Profit as a percentage of Revenue, then which of the following statements is true?

Join BYJU'S Learning Program

Which of the following tools uses ‘revenue from operations’ as a base figure to compare financial statements? [0.88 marks]

Which of the following tools uses ‘revenue from operations’ as a base figure to compare financial statements?

[0.88 marks]