Question 9 of 29beginner🧠 RememberMCQ1 mark

Comparative statements are also known as:

Exercise: Test your Understanding – II | Q: 5 | (Page 16)
For More Understanding

Explanation

Option B is correct because the provided text under section 4.4 'Tools of Analysis of Financial Statements' explicitly states that Comparative Statements indicate the trend and direction of financial position and operating results, and 'This analysis is also known as ‘horizontal analysis’'. In contrast, the text clarifies that Common Size Statements are known as 'Vertical analysis'.

Solution Steps

  1. Step 1: Locate the definition of Comparative Statements in the provided context.

  2. Step 2: Identify the sentence stating 'This analysis is also known as ‘horizontal analysis’'.

  3. Step 3: Match this finding with the given options to select the correct choice.

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