Question

While preparing Common Size Statement of Profit and Loss of a company, each item is expressed as a percentage of ________.

• A. Revenue from operations
• B. Total liabilities
• C. Total expenses
• D. Total assets

Hint:

In P and L common size statements, express each item as a % of revenue from operations.

Answer 1

The Correct Option is A

In Common Size Statements of Profit & Loss, every item is shown as a percentage of "Revenue from operations" to analyze cost structure and profitability.