Financial Statements

Analysis

Easy

The main objective of common size statement of profit and loss is:

to present change in assets and liabilities

to judge the financial soundness

to establish relationship between revenue from operations and other items of statement of profit and loss

All of the above

✅ Correct Option: 3

In a Common Size Statement of Profit and Loss, all items are expressed as a percentage of Revenue from Operations (Sales). This helps in analyzing the relationship between sales and various expenses, incomes, and profits.

(Option 1) is related to the Balance Sheet, not the P&L statement.

(Option 2) is a broader objective of financial analysis, not the specific purpose of a common-size P&L statement.

(Option 3) correctly states the primary objective.

2023: 28 May Shift 1

Common Size Statements are also known as :

2022: 23 Aug Shift 2

Rearrange the following items in a sequence while preparing common size statement.

(A) Calculate percentage of the total as per common base

(B) Prepare the format of Balance sheet and Profit and Loss A/c

(D) Choose a common base

Choose the correct answer from the options given below :

2025: 15 May Shift 2

What is the percentage change in share capital

2025: 14 May Shift 1

Financial analysis is useful and important to different users. Which of the following is not the user of Financial analysis:

2025: 4 June Shift 2

'Vertical analysis' is also known as:

(A) Ratio Analysis

(B) Cash Flow Analysis

(D) Common Size Statement Analysis

Choose the correct answer from the options given below:

2025: 13 May Shift 1

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

The main objective of common size statement of profit and loss is:

Solution

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