Comparative balance sheets _____.
A) are primarily used to analyze the current liabilities of a company.
B) can be used to find out whether the owners' equity has increased.
C) are mandatory for companies that are not publicly traded.
D) provide comparisons of the financial statements of two competitors.

Question

Comparative balance sheets _____.
A) are primarily used to analyze the current liabilities of a company.
B) can be used to find out whether the owners' equity has increased.
C) ​are mandatory for companies that are not publicly traded.
D) provide comparisons of the financial statements of two competitors.

Quizplus · Accepted Answer

Comparative balance sheets provide a comparison of a company's financial position over two periods, which can be used to find out whether the owners' equity has increased or decreased. They are not primarily used to analyze current liabilities or mandatory for companies that are not publicly traded. While they can be used to compare the financial statements of two competitors, this is not their primary purpose.

Comparative Balance Sheets _____