Question

The ultimate purpose of the comparative (Income) financial statement analysis is as follows :

• A. To study the income earning and expenditure spending pattern of the firm for two or more years
• B. To identify the changing pattern of the income and expenditure of the firms
• C. Both : To study the income earning and expenditure spending pattern of the firm for two or more years & To identify the changing pattern of the income and expenditure of the firms
• D. None of these

Answer 1

The correct option is A

To study the income earning and expenditure spending pattern of the firm for two or more years

The ultimate purpose of the comparative (Income) financial statement analysis is to study the income earning and expenditure spending pattern of the firm for two or more years.