Question

A comparative financial statement:

a. Places the balance sheet, the income statement, and the statement of cash flows side-by-side in order to compare the results
b. Places two or more years of a financial statement side-by-side in order to compare results
c. Places the financial statements of two or more companies side-by-side in order to compare results
d. Places the dollar amounts next to the percentage amounts of a given year for the income statement

Answer 1

Answer:

The answer is B

Explanation:

A comparative financial statement compares places two or more years financial statement together in order to compare.

It is always referred to as horizontal analysis because it is the same company and we are only comparing the previous years and the current year result which are placed side by side. Hence, the reason why it is called horizontal analysis.