Accountancy Part BAnalysis of Financial Statements

The comparative financial statements show:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → all of the above

A comparative statement has columns for the figures of two years, then the absolute increase or decrease and the percentage increase or decrease. So it shows all three: the absolute figures in rupees, the change in absolute figures, and that change in percentage.

NCERT (2026-27 edition):
Comparative Statements – “… The following steps may be followed to prepare the comparative statements: Step 1 : List out absolute figures in rupees relating to two points of time (as shown in columns 2 and 3 of Exhibit 4.1). Step 2 : Find out change in absolute figures by subtracting the first year (Col.2) from the second year (Col.3) and indicate the change as increase (+) or decrease (–) and put it in column 4. Step 3 : Preferably, also calculate the percentage change as follows and put it in column 5.”