Question 17 of 29beginner💡 UnderstandTrue / False1 mark
In a Common size statement each item is expressed as a percentage of some common base.
Correct Answer
True
Exercise: Test your Understanding – III | Q: j | (Page 17)
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Explanation
Common size statements express all items of a financial statement as a percentage of some common base. For example, in a Common Size Statement of Profit and Loss, items are expressed as a percentage of revenue from operations, while in a Common Size Balance Sheet, items are expressed as a percentage of total assets or total liabilities.