What do the Comparative Financial Statements of the company show?

Financial position of a concern Earning capacity of a concern Both 1 and 2 None of the above

Both 1 and 2

These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods. It usually applies to the two important financial statements, namely, balance sheet and statement of profit and loss prepared in a comparative form.