Question

What is the principle of common balance

Answer 1

It is known as hit and trial method

Answer 2

A common size balance sheet is a balance sheet that displays both the numeric value and relative percentage for total assets, total liabilities and equity accounts. Common size balance sheets are used by internal and external analysts and are not a reporting requirement of GAAP. A common size balance sheet allows for the relative level of each [asset, liability and equity account to be quickly analyzed.





Read more: Common Size Balance Sheet Definition | Investopedia http://www.investopedia.com/terms/c/commonsizebalancesheet.asp#ixzz4KcseTYvB
Follow us: Investopedia on Facebook