Financial Statements

Analysis

Easy

Common size analysis is also known as

Horizontal Analysis

Vertical Analysis

Cash Flow Analysis

Ratio Analysis

✅ Correct Option: 2

Common size analysis expresses each item of a financial statement as a percentage of a common base (total assets or revenue) for a single period. Since it compares items vertically within the same statement, it is called Vertical Analysis.

2025: 3 June Shift 2

Which market conditions enable firms to earn higher profits?

2022: 8 Aug Shift 2

Vertical analysis uses financial data of a company for:

2026: 31 May Shift 1

Common Size Statement is also referred as:

2026: 29 May Shift 1

Which of the following is not a limitation of financial analysis?

2026: 24 May Shift 1

Match List-I with List-II

List-I	List-II
(A) These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods.	(I) Common Size Statements
(B) It summarises the causes for the changes in cash position of a business enterprise between dates of two balance sheets.	(II) Comparative Statements
(C) These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.	(III) Ratio Analysis
(D) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.	(IV) Cash Flow Analysis

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

Common size statements are the form of:

Common size analysis is also known as

Solution

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