Comparative and Common Size Statements

Commerce ⇒ Accountancy

Comparative and Common Size Statements starts at 12 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Comparative and Common Size Statements. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

Describe the process of preparing a Comparative Balance Sheet.

Describe the steps involved in preparing a Common Size Income Statement.

Explain how Common Size Statements help in identifying structural changes in a business.

Explain the main difference between Comparative and Common Size Statements.

Explain the term 'Base Year' in the context of Comparative Statements.

Explain why Common Size Statements are important for inter-firm comparison.

Explain why it is important to use the same accounting policies when preparing Comparative Statements.

Given the following data for 2022 and 2023: Net Sales: ₹5,00,000 (2022), ₹6,00,000 (2023). Calculate the percentage increase in Net Sales.

Given the following data for two years: Current Assets: ₹3,00,000 (2022), ₹3,60,000 (2023). Calculate the percentage increase in Current Assets.

Given the following data: Net Sales ₹8,00,000, Cost of Goods Sold ₹5,60,000. Calculate the percentage of Cost of Goods Sold in the Common Size Income Statement.

Given the following data: Total Liabilities ₹12,00,000, Long-term Loans ₹3,00,000. What is the percentage of Long-term Loans in the Common Size Balance Sheet?

If Net Sales are ₹10,00,000 and Administrative Expenses are ₹1,50,000, what is the percentage of Administrative Expenses in the Common Size Income Statement?

If Net Sales are ₹7,50,000 and Selling Expenses are ₹75,000, what is the percentage of Selling Expenses in the Common Size Income Statement?

If Total Assets are ₹10,00,000 and Inventory is ₹2,00,000, what is the percentage of Inventory in the Common Size Balance Sheet?

State any two limitations of Common Size Statements.

State any two objectives of preparing Comparative Financial Statements.

State one difference between Horizontal Analysis and Vertical Analysis.

What is a Comparative Statement in Accountancy?