Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Analysis of Financial Statements

Question:

Which of the following tools are used for the comparison of financial statements?

Options:

Comparative Income Statement

Common-size Statement

Comparative Balance Sheet

All the above

Correct Answer:

All the above

Explanation:

The correct answer is option 4- All the above.

Commonly used tools of financial analysis are: Comparative statements, Common size statement, trend analysis, ratio analysis, and cash flow analysis

Option 1 Comparative Income Statement- It is a tool under comparative statement analysis.
Option 2 Common-size Statement- It is a tool of analysis
Option 3 Comparative Balance Sheet- It is a tool under comparative statement analysis.