Practice Common Size Statements (3.5.2) - Financial Statement Analysis – ICSE Class 12
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Common Size Statements

Practice - Common Size Statements

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is the primary function of a Common Size Income Statement?

💡 Hint: Think about how percentages help in comparisons.

Question 2 Easy

How does a Common Size Balance Sheet present data?

💡 Hint: Focus on the total assets as the base amount.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does a Common Size Statement help analyze?

Percentages for comparison
Historical trends only
Absolute values only

💡 Hint: Think about how comparing fractions can simplify larger numbers.

Question 2

True or False: Common Size Statements can be misleading due to different accounting methods.

True
False

💡 Hint: Consider the variations of accounting practices and their effects.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Create a Common Size Income Statement based on the following: Revenue - ₹5,000,000, COGS - ₹3,000,000, Operating Expenses - ₹1,000,000. What are the percentages?

💡 Hint: Make sure to divide each expense by total revenue and multiply by 100.

Challenge 2 Hard

Discuss how a company could improve its gross profit margin, illustrated through a comparative Common Size Analysis.

💡 Hint: Think about both sides of the equation: costs and revenue.

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Reference links

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