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A technique uses in comparative analysis of financial statement is

A. graphical analysis

B. preference analysis

C. common size analysis

D. returning analysis

Answer: Option C

Solution(By Examveda Team)

A technique uses in comparative analysis of financial statement is common size analysis. Common size, or vertical analysis, is a method of evaluating financial information by expressing each item in a financial statement as a percentage of a base amount for the same time period. A company can use this analysis on its balance sheet or its income statement.

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. Exam Practice
    Exam Practice :
    3 years ago

    Thanks, the explanation is good.

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