Question

Which of the following is untrue?

Options

• Common size balance sheet

• Common size statement of profit & loss

• Common size cash flow statement

• None of the above

Answer 1

Common size cash flow statement

Explanation:

Common size statements are typically prepared for balance sheet and statement of profit & loss by expressing items as a percentage of total assets or total revenue respectively. Common size cash flow statements are not standard because cash flow items do not have a meaningful common base for comparison like total assets or sales revenue. Hence, common size cash flow statement is not generally prepared.