CUET Accountancy 2024
Accountancy
Analysis of Financial Statements
Easy
- (A) Expressed as a percentage on revenue from operation
- (B) Horizontal analysis
- (C) Vertical analysis
- (D) Expressed as a percentage on total assets
Which one of the following are correct in connection with the Common Size Statement?
Which one of the following are correct in connection with the Common Size Statement?
Correct Option: 3
Common Size Statement shows financial data as percentages.(A) is correct because it can show expenses as a percentage of revenue.(C) is correct because it can show items as a percentage of total assets.(D) is also correct as it can express items based on total assets.(B) is not correct because horizontal analysis compares data over time, not as percentages.So, the correct answer is option 3: (A), (C), and (D) only.