explain comparative statement..
Answers
A comparative statement is a document used to compare a particular financial statement with prior period statements. Previous financials are presented alongside the latest figures in side-by-side columns, enabling investors to identify trends, track a company's progress and compare it with industry rivals.
Answer:
ᴀ ᴄᴏᴍᴘᴀʀᴀᴛɪᴠᴇ sᴛᴀᴛᴇᴍᴇɴᴛ ɪs ᴀ ᴅᴏᴄᴜᴍᴇɴᴛ ᴜsᴇᴅ ᴛᴏ ᴄᴏᴍᴘᴀʀᴇ ᴀ ᴘᴀʀᴛɪᴄᴜʟᴀʀ ғɪɴᴀɴᴄɪᴀʟ sᴛᴀᴛᴇᴍᴇɴᴛ ᴡɪᴛʜ ᴘʀɪᴏʀ ᴘᴇʀɪᴏᴅ sᴛᴀᴛᴇᴍᴇɴᴛs. ᴘʀᴇᴠɪᴏᴜs ғɪɴᴀɴᴄɪᴀʟs ᴀʀᴇ ᴘʀᴇsᴇɴᴛᴇᴅ ᴀʟᴏɴɢsɪᴅᴇ ᴛʜᴇ ʟᴀᴛᴇsᴛ ғɪɢᴜʀᴇs ɪɴ sɪᴅᴇ-ʙʏ-sɪᴅᴇ ᴄᴏʟᴜᴍɴs, ᴇɴᴀʙʟɪɴɢ ɪɴᴠᴇsᴛᴏʀs ᴛᴏ ɪᴅᴇɴᴛɪғʏ ᴛʀᴇɴᴅs, ᴛʀᴀᴄᴋ ᴀ ᴄᴏᴍᴘᴀɴʏ's ᴘʀᴏɢʀᴇss ᴀɴᴅ ᴄᴏᴍᴘᴀʀᴇ ɪᴛ ᴡɪᴛʜ ɪɴᴅᴜsᴛʀʏ ʀɪᴠᴀʟs.
Explanation:
ʜᴏᴡ ᴅᴏ ʏᴏᴜ ᴡʀɪᴛᴇ ᴀ ᴄᴏᴍᴘᴀʀᴀᴛɪᴠᴇ sᴛᴀᴛᴇᴍᴇɴᴛ?
ᴛʜᴇ ᴇᴀsɪᴇsᴛ ᴡᴀʏ ᴛᴏ ᴄʀᴇᴀᴛᴇ ᴀ ᴄᴏᴍᴘᴀʀᴀᴛɪᴠᴇ ɪɴᴄᴏᴍᴇ sᴛᴀᴛᴇᴍᴇɴᴛ ɪs ᴛᴏ ʟɪsᴛ ᴛʜᴇ ᴀᴄᴄᴏᴜɴᴛs ɪɴ ᴛʜᴇ ʟᴇғᴛ ᴄᴏʟᴜᴍɴ. ᴛʜᴇɴ, ᴄʀᴇᴀᴛᴇ ᴄᴏʟᴜᴍɴs ғᴏʀ ᴇᴀᴄʜ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ᴘᴇʀɪᴏᴅ ᴡɪᴛʜ ᴛʜᴇ ᴍᴏsᴛ ᴄᴜʀʀᴇɴᴛ ᴄʟᴏsᴇsᴛ ᴛᴏ ᴛʜᴇ ʟᴇғᴛ. ᴛᴀᴋᴇ ᴀ ʟᴏᴏᴋ ᴀᴛ ᴇᴀᴄʜ ᴇxᴀᴍᴘʟᴇ ᴏғ ᴀ ᴄᴏᴍᴘᴀʀᴀᴛɪᴠᴇ ɪɴᴄᴏᴍᴇ sᴛᴀᴛᴇᴍᴇɴᴛ.
ᴡʜʏ ᴄᴏᴍᴘᴀʀᴀᴛɪᴠᴇ ғɪɴᴀɴᴄɪᴀʟ sᴛᴀᴛᴇᴍᴇɴᴛ ɪs ᴘʀᴇᴘᴀʀᴇᴅ?
ᴄᴏᴍᴘᴀʀᴀᴛɪᴠᴇ ғɪɴᴀɴᴄɪᴀʟ sᴛᴀᴛᴇᴍᴇɴᴛs ᴀʀᴇ ǫᴜɪᴛᴇ ᴜsᴇғᴜʟ ғᴏʀ ᴛʜᴇ ғᴏʟʟᴏᴡɪɴɢ ʀᴇᴀsᴏɴs: ᴘʀᴏᴠɪᴅᴇs ᴀ ᴄᴏᴍᴘᴀʀɪsᴏɴ ᴏғ ᴀɴ ᴇɴᴛɪᴛʏ's ғɪɴᴀɴᴄɪᴀʟ ᴘᴇʀғᴏʀᴍᴀɴᴄᴇ ᴏᴠᴇʀ ᴍᴜʟᴛɪᴘʟᴇ ᴘᴇʀɪᴏᴅs, sᴏ ᴛʜᴀᴛ ʏᴏᴜ ᴄᴀɴ ᴅᴇᴛᴇʀᴍɪɴᴇ ᴛʀᴇɴᴅs. ᴛʜᴇ sᴛᴀᴛᴇᴍᴇɴᴛs ᴍᴀʏ ᴀʟsᴏ ʀᴇᴠᴇᴀʟ ᴜɴᴜsᴜᴀʟ sᴘɪᴋᴇs ɪɴ ᴛʜᴇ ʀᴇᴘᴏʀᴛᴇᴅ ɪɴғᴏʀᴍᴀᴛɪᴏɴ ᴛʜᴀᴛ ᴄᴀɴ ɪɴᴅɪᴄᴀᴛᴇ ᴛʜᴇ ᴘʀᴇsᴇɴᴄᴇ ᴏғ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ᴇʀʀᴏʀs.
ʜᴏᴘᴇ ɪᴛ ʜᴇʟᴘs ʏᴏᴜ ғʀɪᴇɴᴅ