Question

Under which tool of a financial Statement analysis , 100 % is taken as a base and all other related iteams are expressed as a percentage of base ​

Answer 1

Answer:

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Explanation:

In the financial statements analysis common size

balance sheet is 100% taken as a base and all other related items are expressed as a percentage of base .

Answer 2

Under the Common Size Balance Sheet,100 % is taken as a base and all other related items are expressed as a percentage of the base.

• Common size balance sheet is a balance sheet that expresses both the numeric value and relative percentage for total assets and total liabilities.

• Common size balance statement is a form of estimation of the financial statement.

• It is calculated as the ratio of each asset by total assets and each liability by total liability.

• It is used for comparing firms that differ in size.

• The base of total assets or liabilities is taken as 100.

• Each asset or liability is expressed as a percentage of the total assets or total liability respectively.

Common Size Income Statement:- In this common size statement the sales are taken as the base for all calculations. Each item will be expressed as a percentage of the sales. It helps to compare income statements of two or more periods.

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