Question

How is the common size statement differ from compqrative statement

Answer 1

A comparative statement is a financial statement that shows the financial position at different periods of time.
A comparative statement shows absolute figures and it's changes and a comparative statement shows absolute data and in terms of percentage and it's changes it used mainly compare to understand increase and decrease in sales , or in the cost of the goods that or sold , gross profit, net profit etc...
A common size is a financial statement that displays all items as percentages of a common base figure. A common size financial statements allows easy analysis of data in companies or between time of periods of a company.This financial statement also expressed as in balanced sheet and income sheet E.g revenue data .

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