Question

Comparative Financial Statements mean comparative study of items or components of financial statements for two or more years or with that of other enterprises.

• A. True
• B. False

Answer 1

The correct option is A True

True. Comparative Financial statements mean comparative study of items or components of financial statements of two or more years with that of the same or other company. It is comparison of various ratios, balances, statements of different years of the company. It is basically done to understand the trend off the company.