Which of the following is not the tool for analysis of Financial Statements-

Balance Sheet is a financial statement that shows the financial position of a business on a particular date, not a tool for analyzing financial statements.

The other three options are analytical tools used to interpret and analyze financial statements:

Comparative Statements compare financial data across two or more periods (like comparing 2023 and 2024 balance sheets) to identify absolute and percentage changes.

Common Size Statements convert all figures into percentages of a common base (total assets = 100% or net sales = 100%), making it easier to compare businesses of different sizes or the same business across periods.

Trend Analysis studies financial data over multiple periods (usually 3-5 years) using a base year, where each subsequent year's figures are expressed as percentages or index numbers relative to the base year.

These three are tools applied to financial statements (like the Balance Sheet and Income Statement) to extract meaningful insights. The Balance Sheet itself is the raw data or source document that these tools analyze, not the analytical instrument.