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

Total profit

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Total assets or Total liabilities & equity

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Total assets & equity

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None of these

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Solution

The correct option is B
Total assets or Total liabilities & equity

A company use total assets or total liabilities & equity as the base amount when completing a common size analysis on a balance sheet

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Q. equity means the total liabilty of the company exceeds the total assets.

Q. Prepare a common size Balance Sheet of KJ Ltd. from the following information:

	Particulars	Note No.	31.3.2017 Rs.	31.3.2016 Rs.
I-	Equity and Liabilities:-
1.	Shareholder's Funds		$8, 00, 000$	$4, 00, 000$
2.	Non-current Liabilites		$5, 00, 000$	$2, 00, 000$
3.	Current Liabilities		$3, 00, 000$	$2, 00, 000$
		Total	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 16, 00, 000 - --------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 00, 000 - -------- -$
II-	Assets
1.	Non-current Assets		$10, 00, 000$	$5, 00, 000$
2.	Current Assets		$6, 00, 000$	$3, 00, 000$
		Total	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 16, 00, 000 - --------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 00, 000 - -------- -$

Q. Equity- Rs.

90, 000

, Liability- Rs.

60, 000

Profit of the year- Rs.

20, 000

. Find Total Assets.

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

The correct option is B Total assets or Total liabilities & equity A company use total assets or total liabilities & equity as the base amount when completing a common size analysis on a balance sheet

The correct option is B
Total assets or Total liabilities & equity

A company use total assets or total liabilities & equity as the base amount when completing a common size analysis on a balance sheet