Difference between comparative statements and common size statements
Answers
Answered by
12
A common size is a financial statement that displays all items as percentages of a common base figure. A common size financial statement allows easy analysis of data in between companies or between time periods of a company. This financial statement is also expressed as in Balance sheet and Income sheet. Eg. Revenue data.
A Comparative statement is a financial statement that shows the financial position at different periods of time. The data is shown in a comparative form in order to give the financial position at 2 or more periods. A comparative statement shows absolute figures and its changes, absolute data in terms of percentage and its changes. Balance sheet and income statement are used to express comparative statements. It is used mainly to compare and understand the increase or decrease in sales, or in the cost of the goods that are sold, gross profit, net profit, etc.
A Comparative statement is a financial statement that shows the financial position at different periods of time. The data is shown in a comparative form in order to give the financial position at 2 or more periods. A comparative statement shows absolute figures and its changes, absolute data in terms of percentage and its changes. Balance sheet and income statement are used to express comparative statements. It is used mainly to compare and understand the increase or decrease in sales, or in the cost of the goods that are sold, gross profit, net profit, etc.
Similar questions