What is true about comparative statements of a company?

It shows changes in all items of financial statements in absolute and percentage terms over a period of time for a firm. It shows changes in all items of financial statements in absolute and percentage terms over a period of time between two firms. Both 1 and 2 None of these

Both 1 and 2

Comparative statements can show changes in all items of financial statements in absolute and percentage terms over a period of time for a firm or between two firms. These statements are useful for analyzing the financial performance and trends of a company over time or for comparing the financial performance of multiple firms within the same industry.