What are comparative financial statements? What issue is introduced when entities present information in comparative format?
What are comparative financial statements? What issue is introduced when entities present information in comparative format?
Comparative financial statement= This is the complete set of financial statements that the business entity issues,
revealing information for more than one reporting period. A comparative statement is a document used to compare a
particular financial statement with prior period statements. comparative statements show the effect of business decision
on a company's bottom line and trends are identified and the performance of managers, new lines of business and new
products can be evaluated, without having to flip through individual financial statement. In simple words comparative
financial statement are statement of financial position of a business at different periods this statements help in
determining the profitability of the business by comparing financial data from two or more accounting periods.
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