So, it helps to inform you about the percentage of rise or fall for every item in relation to base year.
Comparative Financial Statement Analysis This gives you information about how to evaluate the way a business is moving.
Since managers are keen to understand whether the business is progressing in a favorable or unfavorable manner, there has to be a comparison between the figures of the existing year and previous years.
To enable you to make such a comparison, a comparative analysis of financial statements is needed.
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