What is the procedure of preparing common size statements?
A) Calculate the percentage change between the absolute figures for each item in both "Year 1" and "Year 2" using the chosen common base.
B) List the absolute figures in rupees for two points in time, specifically for "Year 1" and "Year 2".
C) Choose a common base value for comparison purposes.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- BCA
The procedure of preparing common size statements is as follows-
B) List the absolute figures in rupees for two points in time, specifically for "Year 1" and "Year 2".
C) Choose a common base value for comparison purposes.
A) Calculate the percentage change between the absolute figures for each item in both "Year 1" and "Year 2" using the chosen common base.
| Particulars | First Year (Amount in rupees) |
Second Year (Amount in rupees) |
Percentage of year 1 | Percentage of year 2 |