Question

Explain the term comparative income statement.

Answer 1

A comparative statement is a document that compares a particular financial statement with prior period statements or with the same financial report generated by another company. ... The process reveals trends in the financials and compares one company's performance with another business.

Answer 2

•The comparative income statement is combing various income statements and coloumning them as a single statement.

•We can compare different accounting period over the year.

•It helps in measuring the performance over the years.

•We can also compare our income statements to other companies.

•This helps in viewing how the business is performing over the year.