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:
- A.Total Equity and LiabilitiesCorrect answer
- B.Total Current Assets
- C.Total Revenue from Operations
- 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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