what are the difference between common size and comparative balansheet ? explain.......... plz
Difference between a Comparative Balance Sheet and a Common-Size Balance Sheet
Comparative Balance Sheet | Common-Size Balance Sheet |
1.Comparative Balance Sheet of an enterprise is used to compare the assets, liabilities and capital as on two different dates. | 1.Common-Size Balance Sheet shows the percentage relation of each asset/liability to total assets/liabilities. |
2.Objective is to show the effect of business operations on its assets, liabilities and capital. | 2.Objective is to analyse the changes in individual item of Balance Sheet. |
3. Five Columns are there in a Comparative Balance Sheet, namely, Particulars, Previous Year, Current Year, Absolute Change, Percentage Change. | 3.Five Columns are there in a Common-Size Balance Sheet, namely, Particulars, Absolute Amounts (of Previous and Current Year), Percentage of Balance Sheet (of Previous and Current Year). |