What is shown in comparative balance sheet?
Sarah Martinez
Updated on January 05, 2026
The comparative balance sheet is a balance sheet which provides financial figures of Assets, Liability and equity for the “two or more period of the same company” or “two or more than two company of same industry” or “two or more subsidiaries of same company” at the same page format so that this can be easily …
How are comparative statements prepared?
The easiest way to create a comparative income statement is to list the accounts in the left column. Then, create columns for each accounting period with the most current closest to the left. Take a look at each example of a comparative income statement.
What is the objective of preparing the comparative balance sheet?
Comparative balance sheets provide users with at least three periods of data from prior accounting periods. By helping to identify trends, they help to provide the context needed to make the most informed business decisions.
How do you Analyse a comparative balance sheet?
The first step to complete a comparative balance sheet analysis is to get organized. Locate the company’s balance sheet data and arrange it in a table such that each account is shown side by side over time. Make sure the data is in regular time intervals for consistency.
What is comparative statement?
A comparative statement is a document used to compare a particular financial statement with prior period statements. Previous financials are presented alongside the latest figures in side-by-side columns, enabling investors to identify trends, track a company’s progress and compare it with industry rivals.
What are the advantages of comparative statement?
Advantages of Comparative Statements It is helpful in comparing inter-firm performance and intra- firm performance. It can be used to develop a trend analysis. It helps to find out the weak and strong points in different elements like operating efficiency , financial situation, etc.
What are the types of comparative statement?
The types are: 1. Comparative Income Statement 2. Comparative Expenses Statement 3. Comparative Balance Sheet.
What is the purpose of comparative statement?
What are the objectives of comparative statements?
Objectives of comparative financial statements
- Changes taken place in the financial performance are taken into consideration for further analysis.
- To reveal qualitative information about the firm in terms of solvency, liquidity profitability and so on are extracted from the analysis of financial statements.
How do you interpret comparative statements?
Interpretation: (a) The comparative income statement reveals that there has been increase in net sales of 25% while the cost of goods sold has increased disproportionately by 50% thereby resulting in a decrease of gross profit of 25%.
