Question

2. In __________ figures of 2 or more periods are placed side by side to facilitate easy &

meaningful comparisons

a) Common size Statement analysis

b) Comparative Statement analysis

c) Trend percentage analysis

d) None of these​

Answer 1

Answer:

comparative statement

Explanation:

b) comparative statement

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Answer 2

b) In Comparative statement analysis figures of 2 or more periods are placed side by side to facilitate easy & meaningful comparisons.

Explanation:

• When a company wants to know the financial position, wants to compare the data of 2 or more years, within a company and with other companies in the market.
• To analyze the equity, liability, ratios, turnover, profit percentage, interest payment, etc., to conclude the meaning comparisons we need to compare the financial statements of 2 or more years or of 2 or more companies.
• This type of comparison is known as the comparative statement analysis, generally, these comparisons are performed by experts such as chartered accountants, data analysts.