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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

The main objective of common size statement of profit and loss is:

  1. A
    to present change in assets and liabilities
  2. B
    to judge the financial soundness
  3. C
    to establish relationship between revenue from operations and other items of statement of profit and loss
  4. D
    All of the above

Solution & Step-by-step Explanation

A common size statement of profit and loss converts all items into percentages of revenue from operations (net sales) to establish a clear relationship.

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The main objective of common size statement of profit and loss is:
A
to present change in assets and liabilities
B
to judge the financial soundness
C
to establish relationship between revenue from operations and other items of statement of profit and loss
D
All of the above

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