Question

Statement I: In ‘Vertical Analysis’ figures of two or more years are analyzed and it can be done by preparing ‘Comparative Statements’.

Statement II: In ‘Horizontal Analysis’ figures of a single year are analyzed and it can be done by preparing ‘Common-Size’ Statements.

In the light of the above statements, choose the most appropriate answer from the options given below:

Options

• Both Statement I and Statement II are correct.

• Both Statement I and Statement II are incorrect.

• Statement I is correct but Statement II is incorrect.

• Statement I is incorrect but Statement II is correct.

Answer 1

Both Statement I and Statement II are incorrect.