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Give two advantages of comparative balance sheet. - Accounts

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Question

Give two advantages of comparative balance sheet.

Short Answer
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Solution

Two advantages of a comparative balance sheet are:

  1. It shows the extent of increase or decrease in various items of the balance sheet, giving a clear picture of changes over time.
  2. It highlights the nature, size, and direction of changes for each item, helping in analyzing trends and the financial position of the business more effectively.
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Chapter 11: Tools for Financial Analysis : Comparative Statements - SHORT ANSWER QUESTION [Page 11.25]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 11 Tools for Financial Analysis : Comparative Statements
SHORT ANSWER QUESTION | Q 5. | Page 11.25
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