What is comparative financial statement?
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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. Analysts and business managers use the income statement, balance sheet and cash flow statement for comparative purposes.
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Comparative financial statements are an entity's complete set of financial statements that reveal information for more than one reporting period.
- A comparative statement is a document that compares a particular financial statement to previous year's statements or to another company's same financial report.
- For comparative purposes, analysts and business managers use the statement of income, balance sheet and cash flow statement.
- Comparative financial statements come with an advantage to highlight the percentages involved.
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