Fine Beautiful Objectives Of Comparative Balance Sheet
The comparative balance sheet analysis is the study of the trend of the same items group of items and computed items in two or more balance sheets of the same business enterprise on different dates The changes in periodic balance sheet items reflect the conduct of a business.
Objectives of comparative balance sheet. The advantage of the comparative balance sheet is that it allows the analyst to ascertain the trend in the assets and. Become a member and unlock. With reference to yester financial data.
Comparative Statement of Profit Loss provides information about. See full answer below. The common-size analysis is also useful for comparing the diversification of items on the financial statementthe diversification of incomes on the income statement cash flows on the cash flow statement and assets and liabilities on the balance sheet.
Changes taken place in the financial performance are taken into consideration for further analysis. The objective of the comparative balance sheet is to ascertain the increase and decrease in the assets and liabilities in comparison to the previous years. A business owner or a financial manager should study the following aspects of a comparative balance sheet.
C Comparison expressed in terms of ratios D All of the Above. The purpose of a comparative balance sheet In order to analyze the financial statements for a business more information is needed from the balance sheets. OBJECTIVES OF THE STUDY.
A Provides a summarized view of the operations of the firm B Presents the financial position of the firm C Presents the change in various items of balance sheet D None of the above. A comparative balance sheet presents side-by-side information about an entitys assets liabilities and shareholders equity as of multiple points in time. The comparative financial statement helps the analyst to compare Performance the performance of one firm with that of other similar firm in the industry and also compare the performance of the competitors in the line.
This study confined to five years data from annual reports 2006-2010 financial statements and other records of the Auto Syndicate Private Ltd. Nature and Value of the assets. Objectives of comparative financial statements.