Accountancy Part BAnalysis of Financial Statements

Comparative statements are also known as:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Horizontal Analysis

NCERT (2026-27 edition):
Comparative Statements – “… Comparative figures indicate the trend and direction of financial position and operating results. This analysis is also known as ‘horizontal analysis’.”

NCERT (2026-27 edition):
Test your Understanding

Extract from the NCERT textbook

NCERT (2026-27 edition):
Answers to Test your Understanding

Extract from the NCERT textbook