Match List-I with List-II

List-I	List-II
(A) Comparative Statements	(I) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.
(B) Common Size Statements	(II) It is a technique of studying the operational results and financial position over a series of years.
(C) Trend Analysis	(III) These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.
(D) Ratio Analysis	(IV) These are the statements showing the profitability and financial position of a firm for different periods of time.

Choose the correct answer from the options given below:

Comparative Statements are financial statements that present data for multiple periods (usually two consecutive years) in a columnar format. They show the absolute changes and percentage changes between periods, helping to analyze the profitability and financial position across different time periods. This matches with (IV).

Common Size Statements convert all items in financial statements into percentages of a common base. In the Balance Sheet, all items are expressed as a percentage of total assets or total liabilities. In the Statement of Profit and Loss, all items are expressed as a percentage of revenue from operations. This technique makes each item comparable by expressing it as a percentage of that common base item. This matches with (III).

Trend Analysis is a technique where financial data is analyzed over multiple years (typically 5-10 years) to identify patterns and trends in business performance. A base year is selected and subsequent years' figures are expressed as percentages or index numbers relative to the base year. This helps study operational results and financial position over a series of years. This matches with (II).

Ratio Analysis establishes meaningful relationships between different items of financial statements through mathematical calculations. It shows how various items of the Balance Sheet and Statement of Profit and Loss are related to each other, such as Current Ratio (Current Assets/Current Liabilities) or Gross Profit Ratio (Gross Profit/Revenue × 100). This matches with (I).

The correct matching: (A) - (IV), (B) - (III), (C) - (II), (D) - (I)

Option 2 is correct.