Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to which of the following?

Options:

1

10

100

1000

Correct Answer:

100

Explanation:

The correct answer is option 3- 100.

In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to 100 and then for individual item percentage is calculated taking 100 as a base.