BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bank reconciliations
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A comparative income statement
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A checkbook register
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Post-closing trial-balance records
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Detailed explanation-1: -However, a Comparative Income Statement or Comparative Statement of Profit & Loss is a horizontal analysis of the Income Statement showing operating results for more than one accounting year. In simple terms, it shows the absolute change and percentage change in the figures from one period to another.
Detailed explanation-2: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement.
Detailed explanation-3: -A comparative statement is a document that compares a particular financial statement with prior period statements. Previous financials are presented alongside the latest figures in side-by-side columns, enabling investors to easily track a company’s progress and compare it with peers.