Question:
The statement that shows changes in all items of financial statements in absolute and percentage terms over a period of time, for a firm, or between two firms is called ______.
The statement that shows changes in all items of financial statements in absolute and percentage terms over a period of time, for a firm, or between two firms is called ______.
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Comparative = Comparison Over Time. Common Size = Percent of a Base. Don’t confuse both!
Updated On: Feb 16, 2026
- Common Size Statement
- Comparative Statement
- Cash Flow Statement
- Financial Statement
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The Correct Option is B
Solution and Explanation
Comparative statements are financial statements that present figures side-by-side over different accounting periods.
They show the increase or decrease in items both in absolute value and percentage terms.
This helps analyze the financial progress or decline of a business over time, or compare performance between two firms.
A Common Size Statement expresses all items as a percentage of a base amount (like total sales or total assets), but it doesn’t show the change over time.
Cash Flow Statement only shows inflows and outflows of cash. Financial Statement is a broad term, not specific to comparison.
Hence, the correct answer is (B) Comparative Statement.
They show the increase or decrease in items both in absolute value and percentage terms.
This helps analyze the financial progress or decline of a business over time, or compare performance between two firms.
A Common Size Statement expresses all items as a percentage of a base amount (like total sales or total assets), but it doesn’t show the change over time.
Cash Flow Statement only shows inflows and outflows of cash. Financial Statement is a broad term, not specific to comparison.
Hence, the correct answer is (B) Comparative Statement.
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