Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
Which is correct in respect of comparative statements?
Options:
Helps to assess weak and strong points of a business
It can be used for intra firm comparisons for different periods
It can be used for inter firm comparisons but for same periods
All of the Above
Correct Answer:
All of the Above
Explanation:
Comparative statement shows changes in all items of financial statements in absolute and percentage terms over a period of time for a firm or between two firms.