Question

Distinguish between Comparative Statement& Common Size Financial Statement.

Answer 1

The key difference between comparative and common size financial statements is that comparative financial statements present financial information for several years side by side in the form of absolute values, percentages or both whereas common size financial statements present all items in percentage terms – balance

Answer 2

Explanation:

In comparative statement we have to show the total income of the year (Total net profit).But in common size financial statements we have to find only the total equity and liability