A statement comparing data from two or more consecutive periods is called a:
A)comparative balance sheet.
B)comparative income statement.
C)common-size statement.
D)both A and B.

Question

Quizplus · Accepted Answer

A comparative balance sheet compares the balances of assets, liabilities, and equity at two or more points in time, while a comparative income statement compares the revenues, expenses, and net income for the same period in two or more years. Therefore, both A and B options are correct. A common-size statement, on the other hand, expresses financial statement items as percentages of a common base amount and does not compare data from different periods.

A Statement Comparing Data from Two or More Consecutive Periods