Rearrange the following items in a sequence while preparing common size statement.(A) Calculate percentage of the total as per common base(B) Prepare the format of Balance sheet and Profit and Loss A/c(C) List out absolute figures in rupees at two points of time(D) Choose a common baseChoose the correct answer from the options given below :
- A(B), (C), (D), (A)
- B(A), (C), (B), (D)
- C(B), (D), (C), (A)
- D(B), (A), (D), (C)
Solution & Step-by-step Explanation
The correct chronological sequence for preparing a common size statement is:Prepare the format of the Balance Sheet or Statement of Profit and Loss (B).List out the absolute figures in rupees for the given periods (C).Choose a common base (e.g., Total Assets or Revenue from Operations) (D).Calculate the percentage of each item with respect to the common base (A).Thus, the correct order is (B), (C), (D), (A).