Q.11. The common size statements are useful, both, in intra-firm comparisons over different years an

Q: What is the correct answer for CUET UG Accountancy Q11?

The correct answer is A. Common-size statements show each item of a financial statement (like Balance Sheet or Profit & Loss Account) as a percentage of a common base item. For Balance Sheet → total assets or total liabilities = 100%. For Income Statement → net sales = 100%. This helps compare the proportion of each item: Within the same firm over different years (intra-firm comparison) and Between different firms in the

Q: Q.11. The common size statements are useful, both, in intra-firm comparisons over different years and also in making interfirm comparisons for several years. This analysis is also known as

The correct answer is A. Common-size statements show each item of a financial statement (like Balance Sheet or Profit & Loss Account) as a percentage of a common base item. For Balance Sheet → total assets or total liabilities = 100%. For Income Statement → net sales = 100%. This helps compare the proportion of each item: Within the same firm over different years (intra-firm comparison) and Between different firms in the

Q: What are the options for this CUET UG Accountancy question?

A. 'Vertical analysis' · B. 'Ratio analysis · C. 'Trend analysis' · D. 'Horizontal analysis'

Question

Q.11. The common size statements are useful, both, in intra-firm comparisons over different years and also in making interfirm comparisons for several years. This analysis is also known as

FirstInTest · Accepted Answer

Common-size statements show each item of a financial statement (like Balance Sheet or Profit & Loss Account) as a percentage of a common base item. For Balance Sheet → total assets or total liabilities = 100%. For Income Statement → net sales = 100%. This helps compare the proportion of each item: Within the same firm over different years (intra-firm comparison) and Between different firms in the same industry (inter-firm comparison). Since this analysis studies the relative size (vertical proportion) of items in a single statement, it is called Vertical Analysis.

Answer

'Vertical analysis'

Answer

'Ratio analysis

Answer

'Trend analysis'

Answer

'Horizontal analysis'

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