What are Comparative Financial Statements?


Kishore V, SME and ACW at Edumarz

  • Comparative statements, often known as comparative financial statements, are representations of a company’s financial situation across time. 
  • By comparing financial data from two or more accounting periods, these statements aid in assessing the profitability of a corporation.
    Horizontal Analysis refers to the process of updating data from two or more eras side by side. 
  • The benefit of such an analysis is that it aids investors in identifying business trends, monitoring a company’s success, and comparing it to that of its rivals.

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