The following steps have been adopted for comparative statement analy…

The following steps have been adopted for comparative statement analysis of financial statement of a company:

A. Calculate the percentage change in individual items
B. Draw interpretation and conclusion
C. List out absolute amount of two point of times of two years
D. Calculate the overall change of percentage of group of items
E. Find out the change in absolute amount

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → C, E, A, D, B

A comparative statement places the figures of two years side by side and then measures the change.

C. List out absolute amount of two point of times of two years — the figures of both years are written first.

E. Find out the change in absolute amount — the first year’s figure is subtracted from the second year’s.

A. Calculate the percentage change in individual items — the absolute change is divided by the first year’s figure.

D. Calculate the overall change of percentage of group of items — totals of groups (for example, current assets) are compared in the same way.

B. Draw interpretation and conclusion — the direction and trend of the changes is read last.

NCERT (2026-27 edition):
Comparative Statements – “… The following steps may be followed to prepare the comparative statements: Step 1 : List out absolute figures in rupees relating to two points of time (as shown in columns 2 and 3 of Exhibit 4.1). Step 2 : Find out change in absolute figures by subtracting the first year (Col.2) from the second year (Col.3) and indicate the change as increase (+) or decrease (–) and put it in column 4. Step 3 : Preferably, also calculate the percentage change as follows and put it in column 5.”

NCERT (2026-27 edition):
Comparative Statements – “… The figures in the comparative statements can be used for identifying the direction of changes and also the trends in different indicators of performance of an organisation.”