Which statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet?

Actual

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Potential

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Net

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None of these

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Solution

The correct option is C
Net

Common size statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet

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Similar questions

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.

Q. Choosing a common base (as 100), for example, sales revenue total may be taken as base (100) in case of income statement, and total assets or total liabilities (100) in case of balance sheet, is step ____ in the procedure adopted for preparing common size income statements.

The common size income statement defines all items as a percentage of ___

Which of the following statements are false?
A) When all the figures in a balance sheet are stated as percentage of the total, it is termed as horizontal analysis.
B) When financial statements of several years are analyzed, it is termed as vertical analysis.
C) Vertical Analysis is also termed as dynamic analysis.

Q. 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.

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Which statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet?

The correct option is C Net Common size statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet

The correct option is C
Net

Common size statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet