Question

A statement comparing data from two or more consecutive periods is called a:

a. horizontal analysis
b. comparative balance sheet
c. common-size statement d.
d. both a and

Answer 1

b. comparative balance sheet by definition

Answer 2

The correct answer would be B, Comparative Balance Sheet.

Step-by-step explanation:

A Balance Sheet is one of the many financial statements like Income Statement, Cash Flow Statement, etc. A Balance Sheet is a financial statement which contains information about the Assets, Liabilities and Owner's Equity of the company. This financial statement gives an overall look into the company's financial status. So when data of two or more consecutive periods is needed to be compared, then comparative financial statements are studied for this purpose. These balance sheets of different time periods show the general status of that company.