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:

Comparative Statement compares financial data between two or more periods (typically two years). It shows absolute changes and percentage changes, making it useful to study the relationship between different years. This matches with (III).

Common Size Statement converts all items into percentages of a common base. In the Income Statement, each item is expressed as a percentage of Revenue/Sales. In the Balance Sheet, each item is shown as a percentage of Total Assets. This matches with (IV).

Trend Analysis examines financial data over multiple years (usually 5 or more consecutive years). A base year is selected and all subsequent years are expressed as percentages of that base year to identify patterns and directions of change in operational results. This matches with (I).

Ratio Analysis establishes mathematical relationships between different items within financial statements. For example, Current Ratio = $\frac{\text{Current Assets}}{\text{Current Liabilities}}$ or Gross Profit Ratio = $\frac{\text{Gross Profit}}{\text{Net Sales}} \times 100$. This matches with (II).

The correct matching is:

• (A) → (III)
• (B) → (IV)
• (C) → (I)
• (D) → (II)

Correct Answer: Option 4