Analysis of Financial Statements · Class 12 · CBSE · Commerce Accountancy

In a Common Size Balance Sheet, each asset is expressed as a percentage of:

Practice question from Analysis of Financial Statements (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.

medium · MCQ · Q-F34322

In a Common Size Balance Sheet, each asset is expressed as a percentage of:

  1. A.Total Equity and LiabilitiesCorrect answer
  2. B.Total Current Assets
  3. C.Total Revenue from Operations
  4. D.Total Non-Current Assets

Solution

In a Common Size Balance Sheet, Total Assets is always equal to Total Equity and Liabilities. Every individual asset and liability item is expressed as a percentage of Total Equity and Liabilities (or Total Assets).

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