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.
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?
Which of the following is a benefit of using Comparative Statements? (1) Identifies trends, (2) Ignores changes in accounting policies, (3) Does not help in decision making, (4) Only shows data for one year
Which of the following is a limitation of Comparative Statements? (1) Ignores price level changes, (2) Facilitates trend analysis, (3) Useful for decision making, (4) Helps in inter-firm comparison
Which of the following is NOT a benefit of Common Size Statements? (1) Facilitates inter-firm comparison, (2) Shows trend over time, (3) Ignores size differences, (4) Helps in structural analysis
Which of the following is NOT a component of a Comparative Income Statement? (1) Absolute figures, (2) Percentage change, (3) Increase or decrease in amount, (4) Ratio analysis
Fill in the blank: Common Size Statements are also known as ________ analysis.
Fill in the blank: Comparative Statements are also known as ________ statements.
Fill in the blank: In a Common Size Statement, the base figure for the Balance Sheet is ________.
Fill in the blank: In a Comparative Income Statement, the increase or decrease in each item is shown in both ________ and ________.
True or False: Common Size Statements are useful for comparing companies of different sizes.
True or False: Common Size Statements can be prepared for both Balance Sheet and Income Statement.
True or False: Comparative Statements are also called Vertical Analysis.
True or False: Comparative Statements help in identifying trends over different accounting periods.
