Advertisements
Advertisements
प्रश्न
The statement in which individual items of financial statements of two or more years are placed side by side and converted into percentage of a common base is ______.
विकल्प
Comparative Statements.
Common-size Statements.
Financial Statements.
None of these.
Advertisements
उत्तर
The statement in which individual items of financial statements of two or more years are placed side by side and converted into percentages of a common base is common-size statements.
Explanation:
A common-size statement is a vertical analysis tool where financial data of two or more years are placed side-by-side. Instead of showing absolute changes, every single individual line item is divided by a common base (such as Total Assets in a Balance Sheet or Revenue from Operations in an Income Statement) and converted into a clear percentage.
