Question : The changes in comparative statement are shown in _______.
Option 1: Pecentages
Option 2: Absolute amounts
Option 3: Both (1) and (2)
Option 4: Ratios
Correct Answer: Both (1) and (2)
Solution : Answer = Both (1) and (2)
A widely used method in Comparative Income Statements displays the amount that has changed over time, both in absolute and percentage terms. It is also referred to as trend analysis because it makes trend analysis simple.
Hence, the correct option is 3.