Question 11 of 29beginner💡 UnderstandTrue / False1 mark

Comparative statements are the form of horizontal analysis.

Correct Answer

True

Exercise: Test your Understanding – III | Q: b | (Page 17)
For More Understanding

Explanation

The statement is correct. According to the textbook context, Comparative Statements show profitability and financial position of a firm for different periods of time in a comparative form. The context explicitly states that 'This analysis is also known as horizontal analysis'. Additionally, in the MCQ section provided, question 5 asks what comparative statements are also known as, and the correct answer is 'Horizontal analysis'. This confirms that comparative statements are indeed a form of horizontal analysis.