Match List-I with List-II
List-I
(A) Comparative Statement
(B) Common Size Statement
(C) Ratio Analysis
(D) Trend Analysis
List-II
(I) Expressing all items as % of a common base.
(II) Determining direction of movement over several years
(III) Evaluate relationship among items of a balance sheet and a statement of profit and loss of a firm.
(IV) Shows changes in items over two or more periods
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
Correct answer: Option (3) → (A) - (IV), (B) - (I), (C) - (III), (D) - (II)
Concept: Tools of analysis of financial statements, per Analysis of Financial Statements.
(A) Comparative Statement – shows changes in items over two or more periods → (IV).
(B) Common Size Statement – expresses all items as a percentage of a common base → (I).
(C) Ratio Analysis – evaluates the relationship among items of the balance sheet and statement of profit and loss → (III).
(D) Trend Analysis – determines the direction of movement over several years → (II).
Thus A-IV, B-I, C-III, D-II.