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प्रश्न
The objective of the common size statement of profit and loss is not to ______.
पर्याय
Present changes in various items of incomes and expenses
Judge the cost items
Establish relationship between revenue from operations and other items of statement of profit & loss
Judge the relative financial soundness for different enterprises
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उत्तर
The objective of the common size statement of profit and loss is not to judge the relative financial soundness for different enterprises.
Explanation:
The objective of a common size Statement of Profit and Loss is to analyse and evaluate the relationship of various things to net revenue from operations, rather than to assess overall financial soundness, which is normally accomplished through ratio or balance sheet analysis.
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संबंधित प्रश्न
What is meant by a 'Common Size Statement'?
Following is the Income statements, prepare a Common Size Income Statements of Jayant
Ltd. For the year ended 31-3-2011:
Income Statement of Jayant Ltd.
for the year ended 31.3.2011
| Particulars |
Amount Rs |
| Income: | |
| Sales | 25,38,000 |
| Other Incomes | 38,000 |
| Total Income | 25,76,000 |
| Expenses: | |
| Cost of goods sold | 14,00,000 |
| Operating expenses | 5,00,000 |
| Total Expenses | 19,00,000 |
| Tax | 3,38,000 |
Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.
From the following information, prepare a Common Size Statement of Profit and Loss of Prudence Ltd. for the
year ending 31st March, 2017:
Particulars 31.03.2017
Revenue from Operations 20,00,000
Purchases 15,00,000
Changes in inventories 1,00,000
Other Income (Dividend received) 40,000
Depreciation and Amortization expenses 60,000
Tax Rate @ 40%
Select the appropriate answer from the alternatives given below & rewrite the completed statement :
The common size statement requires _____________.
Prepare a Common size statement of profit and loss of Shefali Ltd. with the help of following information:
| Particulars | 2015-16 (Rs) |
2016-17 (Rs) |
| Revenue from operations | 6,00,000 | 8,00,000 |
| Indirect expense | 25% of gross profit | 25% of gross profit |
| Cost of revenue from operations | 4,28,000 | 7,28,000 |
| Other incomes | 10,000 | 12,000 |
| Income tax | 30% | 30% |
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% |
|||
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 K K Ltd. for the year ended 31.3.2021 and 31.3.2022:
| Particulars | 31.3.2022 Amount (₹) |
31.3.2022 Amount (₹) |
| Revenue from operations | 20,00,000 | 15,00,000 |
| Other Income | 2,00,000 | 1,50,000 |
| Expenses | 4,00,000 | 3,00,000 |
| Tax Rate 50% |
From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31st March 2022 and 31st March 2023, prepare a common size statement of profit & loss:
| Particulars | Note No. | 2022-23 (₹) | 2021-22 (₹) |
| Revenue from operations |
8,00,000 | 10,00,000 | |
| Gross Profit | 60% | 70% | |
| Other Expenses | 2,20,000 | 2,60,000 | |
| Tax Rate | 50% | 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 |
