Question

Explain how the financial data be compared??

Answer 1

QUESTION  Explain how the financial data be compared??

ANSWER Financial Statement Comparison

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 2

The financial data can be compared...

only when the common accounting principles are used in preparing these statements

and

those comparative statements are:

1. Comparative Balance Sheet and
2. Comparative Income Statement.

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