This analysis helps to understand the impact of each item in the financial statement and its contribution to the resulting figure.

Comparative statements

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Common size statements

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Cash flow statements

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None of these

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Solution

The correct option is B
Common size statements

Common size statement analysis helps to understand the impact of each item in the financial statement and its contribution to the resulting figure.

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Similar questions

What do you understand by analysis and interpretation of financial statements? Discuss its importance.

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