Advertisements
Advertisements
प्रश्न
Common size statements are prepared ______.
पर्याय
In the form of ratios
In the form of percentages
In both of the above
None of the above
Advertisements
उत्तर
Common size statements are prepared in the form of percentages.
Explanation:
Common size statements, each item is expressed as a percentage of a common base total assets, or revenue from operations in the income statement. This helps easy comparison and analysis of financial data.
APPEARS IN
संबंधित प्रश्न
Explain the following :
Common size balance sheet.
Solve the following:
In common size balance sheet fixed assets are Rs 50,000 and balance sheet total as Rs 1,50,000. Find out percentage of fixed assets to total assets.
Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:
| Particulars | Aditya Ltd. Rs. |
Anjali Ltd. Rs. |
| I. Equity and Liabilities | ||
|
a) Equity share capital |
6,00,000 | 8,00,000 |
|
b) Reserves and surplus |
3,00,000 | 2,50,000 |
|
c) Current liabilities |
1,00,000 | 1,50,000 |
| Total | 10,00,000 | 12,00,000 |
| II. Assets | ||
|
a) Fixed assets |
4,00,000 | 7,00,000 |
|
b) Current assets |
6,00,000 | 5,00,000 |
| Total | 1,00,0000* | 12,00,000 |
*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.
From the following Statement of Profit and Loss of Star Ltd., for the year ended 31st March, 2015 and 2016, prepare a Common-size statement:
| Particulars | Note No. | 2015-16 |
2014-15 |
||
| Revenue from Operations | ₹ 25,00,000 | ₹ 20,00,000 | |||
| Employee Benefit Expenses | ₹ 10,00,000 | ₹ 7,00,000 | |||
| Other Expenses | ₹ 2,00,000 | ₹ 3,00,000 | |||
|
Tax Rate |
40% |
40% |
|||
Prepare common size statement of profit and loss from the following information:
| Particulars | Note No. | 2017-18 | 2016-17 |
| Revenue from operations | ₹ 16,00,000 | ₹ 8,00,000 | |
| Cost of material consumed | |||
| (% of revenue from operations) | 60% | 50% | |
| Operating expenses | ₹ 80,000 | ₹ 40,000 | |
| Income tax rate | 40% | 30% |
Consider the following statements.
Statement 1 - "Common size statements and financial ratios are the two tools employed in vertical analysis."
Statement 2 - "Common size statements are also as a component percentage statement
The objective of the common size statement of profit and loss is not to ______.
Prabhu wants to know the main objective of Common Size Statement, help him to choose one:
From the following information, prepare a 'Common Size Statement of Profit and Loss' of GG Ltd. for the year ended 31.3.2021 and 31.3.2022:
| 31.3.2022 | 31.3.2021 | |
| Revenue from operations | 20,00,000 | 10,00,000 |
| Other Income | 2,00,000 | 1,00,000 |
| Expenses | 15,00,000 | 8,00,000 |
| Tax @ 50% |
From the following information, you are required to prepare a common size balance sheet of Super Ltd. as at 31st March, 2024.
| Particulars | (₹) |
| Non-Current Liabilities | ₹ 2,00,000 |
| Shareholders’ Fund | 2.5 times more than the Non-Current Liabilities |
| Current Liabilities | ₹ 1,00,000 |
| Current Assets | ₹ 3,00,000 |
| Non-Current Assets | 70% of the Equity & Liabilities |
