Question

In a common-size statement of profit & loss, the amount of net revenue from operations is assumed to be equal to ______.

Options

• 1

• 10

• 100

• 1,000

Answer 1

In a common-size statement of profit & loss, the amount of net revenue from operations is assumed to be equal to 100.

Explanation:

In a common size Statement of Profit & Loss, Net Revenue from Operations is taken as ₹100 to standardize financial analysis. All data (expenses, earnings, etc.) are shown as percentages of ₹ 100 for easy comparison across periods or firms.