Accountancy Part BAnalysis of Financial Statements

Identify the other name of common size statement, which is one of the…

Identify the other name of common size statement, which is one of the tools of analysis of financial statements.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Component percentage statement

In a common size statement every item is shown as a percentage of a common total, i.e. as a component percentage of the whole, which gives it its other name.

NCERT (2026-27 edition):
Common Size Statement – “Common Size Statement, also known as component percentage statement, is a financial tool for studying the key changes and trends in the financial position and operational result of a company. Here, each item in the statement is stated as a percentage of the aggregate, or revenue from operations of which that item is a part.”