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Consider the following statements given below: I. In Common-size Balance Sheet, each item is converted into the percentage of share capital. -

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Question

Consider the following statements given below:

  1. In Common-size Balance Sheet, each item is converted into the percentage of share capital.
  2. In Common-size Statement of Profit and Loss, each item is converted into the percentage of total expenses.
  3. In Comparative Statement of Profit and Loss, absolute and percentage change in the items during two periods of time are calculated.

 Choose the correct option:

Options

  • Only (I) is correct

  • Only (II) is correct

  • Only (III) is correct

  • All are correct

MCQ

Solution

Only (III) is correct

Explanation:

Comparative statements analyze financial data from two points in time to draw relevant inferences about changes in financial condition and operating results.

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