Which of the following is not true about Comparative Statements: |
These are the statements showing the profitability and financial position of a firm for different periods of time. This analysis is also known as 'vertical analysis'. Comparative figures indicate the trend and direction of financial position and operating results. The financial data will be comparative only when same accounting principles are used in preparing these statements. |
This analysis is also known as 'vertical analysis'. |
The correct answer is Option (2) → This analysis is also known as 'vertical analysis'. |