A comparative statement is a financial statement that compares financial information for two or more periods. The periods being compared can be adjacent, such as last year and this year, or they can be nonadjacent, such as 2013 and 2014. Comparative statements are often used in business to track changes in financial performance over time. What is comparative financial statement answer in one sentence? A comparative financial statement is a financial statement that compares financial information for two or more periods.
What are the two types of comparative statement? 1. Horizontal analysis: A horizontal analysis is conducted by comparing financial statement line items over a period of time. This type of analysis is useful in identifying trends.
2. Vertical analysis: A vertical analysis is conducted by comparing financial statement line items to a common base. This type of analysis is useful in identifying relationships. What do you mean by comparative financial statement explain their objective? Comparative financial statements present information about two or more accounting periods. The objective of comparative financial statements is to enable users to identify trends in a company's financial performance over time.