Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

What is the procedure of preparing comparative statements?
A) Provide the absolute figures in rupees for two specific points in time.
B) Calculate the difference between the two absolute figures and indicate whether it's an increase or decrease. Record the result in a separate column.
C) Calculate the percentage change between the two absolute figures and present it in a new column.

Options:

ABC

BCA

CAB

CBA

Correct Answer:

ABC

Explanation:

The procedure of preparing comparative statements is as follows-
A) Provide the absolute figures in rupees for two specific points in time.
B) Calculate the difference between the two absolute figures and indicate whether it's an increase or decrease. Record the result in a separate column.
C) Calculate the percentage change between the two absolute figures and present it in a new column.

Particulars First Year
(Amount in rupees)
Second Year
(Amount in rupees)
Absolute  Increase (+) or Decrease (–) Percentage Increase (+) or Decrease (–)