Financial statement analysis involves forms of comparison including:
A)Comparing changes in the same item over a number of periods.
B)Comparing key relationships within the same year.
C)Comparing key items to industry averages.
D)All of the other answers are correct.

Question

Quizplus · Accepted Answer

Financial statement analysis involves all of the forms of comparison listed in the answer choices. Comparing changes in the same item over a number of periods helps to identify trends and potential problems. Comparing key relationships within the same year can provide insights into the efficiency and profitability of a company. Comparing key items to industry averages can help to evaluate a company's performance in relation to its competitors. All of these forms of comparison are important in financial statement analysis.

Financial Statement Analysis Involves Forms of Comparison Including