Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

In what form Horizontal Analysis provides information about a company?

Options:

Percentage

Absolute 

Both

None of these

Correct Answer:

Both

Explanation:

Comparative Statements refer to the statement of profit and loss and the balance sheet prepared by providing columns for the figures for both the current year as well as for the previous year and for the changes during the year, both in absolute and relative terms. Analysis through Comparative Statements is horizontal analysis.