Common Size Analysis

     

  • It is Process of Equivalisation
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  • In this statement result will be showed in terms of PERCENTAGE
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  • All the Data Items in the statment will compare with one Data Item considering it as BASE DATA ITEM., and result will display interms of percentage
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    Ex:In Balance sheet all the data items will compare with ASSETS., ASSET is BASE ITEM

     

    Ex:In Income Statement all the data items will compare with Net Sales., which is a BASE ITEM

     

     

  • This process having equivalent status with VERTICAL ANALYSIS
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