Meaning

Common Size Statements are the statements in which individual figures are converted into percentages to some common base .Common Size Statements may be prepared for the Balance Sheets or the Income statements. Total Assets or Total Liabilities is taken as a base for Common Size Balance Sheet and the figure of Net Sales is taken as the base for the Common Size Income Statement.

Types of Common Size Statements

1.     Common Size Balance Sheet

2.     Common Size Income Statement