Question : Every item of the Balance Sheet is expressed as % of _________ while preparing Common-size Balance Sheet.
Option 1: Non-current Assets
Option 2: Current Assets
Option 3: Total Assets
Option 4: Net sales
Correct Answer: Total Assets
Solution : Answer = Total Assets
Each item is expressed as a proportion of total assets or total liabilities and shareholders' equity in a common-size balance sheet. As a result, comparing various businesses or historical periods is much simpler. For instance, inventory might be stated as 10% of total assets if a company had Rs.1,00,000 in inventory and Rs.10,00,000 in total assets. Hence, the correct option is 3.
Question : Which of the following statements is correct?
Question : In a Company Balance Sheet, the credit (profit) balance of the Statement of Profit and Loss is shown under:
Question : The premium on redemption of debenture is shown under which head of the Balance Sheet?
Question : Due to be Settled within 12 Months from the Date of the Balance Sheet: A liability is classified or shown as ------.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile