Which of the following statements are true A Common size balance sheet shows relative value of the v...........

General Accounting Principles Financial statement analysis

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Which of the following statements are true?

A) Common-size balance sheet shows relative value of the various items.

B) In the common size income statement, each product is represented as a percentage of the net sales figure.

C) Common size income statements represent the various elements as a percentage of the gross profit.

Both A and B

Both A and C

All of the above

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Explanation:

Common size statement, also known as component percentage statement, is a financial tool for studying the key changes and trends in the financial position and operational result of a company. Common size balance sheet shows relative value of the various items. In common size income statement, the item of expenditure are shown as percentage of the net sales.