Question

______ Analysis means analysis and review of financial statements for a single year.

Options

• Dynamic

• Static

Answer 1

Static Analysis means analysis and review of financial statements for a single year.

Explanation:

Static Analysis (also known as Vertical Analysis) refers to the review of financial statements for a single year only, such as preparing a Common-size Statement. It is called static because it locks the variables into a fixed, one-year snapshot rather than tracking moving trends over multiple consecutive years.