Question

Comparative Statements are also known as:

• A. Horizontal Analysis
• B. Ratio Analysis
• C. Cash Flow Analysis
• D. Vertical Analysis

Hint:

Remember: - Comparative = Horizontal (year-wise comparison) - Common-size = Vertical (percentage of total)

Answer 1

The Correct Option is A

Step 1: Understanding Comparative Statements.
Comparative statements show financial data for two or more years side by side, allowing comparison across time. Step 2: Alternate term.
This type of analysis that evaluates changes over different periods is called Horizontal Analysis — hence, comparative statements are also known as horizontal analysis.