Match List-I with List-II

List-I	List-II
(A) 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	(I) Trend Analysis
(B) Technique of studying the operational results and financial position over a series of years.	(II) Comparative Statements
(C) Statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods	(III) Ratio Analysis
(D) Describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm	(IV) Common-Size Statements

Choose the correct answer from the options given below:

Looking at each description in List-I and matching with the appropriate technique in List-II:

(A) describes statements where items are expressed as percentage of a common base item. For example, in a Balance Sheet, all items shown as percentage of total assets, or in Statement of Profit & Loss, all items as percentage of revenue. This is (IV) Common-Size Statements.

(B) describes studying operational results and financial position over a series of years (multiple years). This analysis of data across consecutive periods to identify patterns is (I) Trend Analysis.

(C) describes statements showing data for different periods in comparative form (usually two or more periods side by side). For example, showing figures of 2023 and 2024 together with absolute and percentage changes. This is (II) Comparative Statements.

(D) describes the significant relationship between various items of financial statements. These relationships are expressed through ratios like Current Ratio, Debt-Equity Ratio, etc. This is (III) Ratio Analysis.

The correct matching is:

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

Correct answer: Option 2