Common Size Statement

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Common Size Statement: Overview

This topic covers concepts such as, Common Size Statement etc.

Important Questions on Common Size Statement

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Which financial ratio is not typically derived from a common size statement?

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Which of the following is NOT an advantage of common size statements?

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What is the primary purpose of using common size statements?

EASY
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Common size statements are usually presented in which format?

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In a common size income statement, cost of goods sold is represented as a percentage of what?

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What does a common size statement help in comparing across different companies?

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Which financial statement is not typically converted into a common size statement?

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In a common size balance sheet, each line item is expressed as a percentage of what?

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Which statement is primarily used to create a common size income statement?

HARD
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In a common size statement, all financial items are expressed as a percentage of which financial statement line item?

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While preparing common-size Balance sheet, each item of Balance sheet is expressed as % of

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Common size analysis is also known as

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Common Size Statements are also known as:

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Which one of the following are correct in connection with the Common Size Statement?

(A) Expressed as a percentage on revenue from operation
(B) Horizontal analysis
(C) Vertical analysis
(D) Expressed as a percentage on total assets