Question

Comparative Income Statement shows:

Options

• Revenue and Expenses in absolute value.

• Increase/decrease in absolute value of Revenues and Expenses.

• Proportionate changes in Revenues and Expenses.

• All of the above.

Answer 1

All of the above.

Explanation:

A Comparative Income Statement presents the complete horizontal analysis of revenue and expenses. It includes columns for the absolute values of each item for both years, registers the absolute increase or decrease in rupees, and computes the proportionate percentage changes using the base year.