Question:
The tool of ‘Analysis of Financial Statements’ which indicates the trend and direction of financial position and operating results is:
The tool of ‘Analysis of Financial Statements’ which indicates the trend and direction of financial position and operating results is:
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Comparative Statements are used to compare data across years to understand trends and direction.
Updated On: Jul 7, 2025
- Ratio Analysis
- Cash Flow Analysis
- Common Size Statements
- Comparative Statements
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The Correct Option is D
Solution and Explanation
Comparative Statements show data for two or more periods side-by-side to evaluate trends and changes. They help analyze financial direction over time.
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