Financial Statements

Analysis

Easy

Horizontal analysis is known as:

dynamic analysis

structural analysis

static analysis

all of the above

✅ Correct Option: 1

Horizontal analysis studies the behaviour of financial data across multiple periods. Since the focus is on changes and trends over time, it is also called dynamic analysis. Vertical analysis, in contrast, is called static or structural analysis because it studies the internal structure of a single period's statement.

2022: 8 Aug Shift 2

Vertical analysis uses financial data of a company for:

2025: 15 May Shift 1

Which analysis is a judgemental process which aims to estimate current and past financial positions and the results of the operation of an enterprise, with primary objective of determining the best possible estimates and predictions about the future conditions?

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(Book/Theory proposed/Characteristic, etc.)	(Author/Thinker/Name of Theory, etc.)
(A) comparative statement	(I) study the operational results over the series of years.
(B) common size statement.	(II) express the relationship between various items of financial statement.
(C) trend analysis.	(III) study the relationship between two or more years.
(D) ratio analysis.	(IV) express each item as a percentage of the common base or item.

Choose the correct answer from the options given below:

2026: 21 May Shift 1

The following steps are to be followed to prepare the comparative statements in the prescribed sequence.

(A) Find out the change in absolute figures by subtracting the first year from the second year and indicate the change as increase (+) or decrease (–)

(B) Rearrange the given items

(D) List out absolute figures in rupees relating to two points of time

Choose the correct answer from the options given below.

2022: 30 Aug Shift 2

Common size analysis is also known as

2025: 22 May Shift 1

Analysis simply means __________ data.

Horizontal analysis is known as:

Solution

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