Question:
Which of the following tools of ‘Analysis of Financial Statements’ indicate the trend and direction of financial position and operating results?
Which of the following tools of ‘Analysis of Financial Statements’ indicate the trend and direction of financial position and operating results?
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Comparative statements allow for trend analysis by comparing financial statements over multiple periods to understand the direction of business performance.
Updated On: June 02, 2025
- Comparative statements
- Common size statements
- Cash flow analysis
- Ratio analysis
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The Correct Option is A
Solution and Explanation
Comparative statements provide a side-by-side comparison of financial data over different periods, helping to assess trends and financial performance.
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