Arrange the following steps in the correct logical sequence to prepare Comparative Financial Statements:(A) List the absolute financial figures in rupees for both points of time.(B) Prepare the required statement format with columns.(C) Find the change in absolute figures by subtracting the base year from the current year, indicating the change as an increase or decrease.(D) Calculate the percentage change using the base year as the benchmark.Choose the correct answer from the options given below:
- A(B), (A), (D), (C)
- B(B), (A), (C), (D)
- C(B), (C), (D), (A)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The process for preparing comparative statements follows these steps:First (B): Draw the structural statement format containing columns for particulars, base year figures, current year figures, absolute change, and percentage change.Second (A): Enter the historical absolute figures for both financial periods side by side.Third (C): Calculate the absolute net change () by subtracting the first year from the second year.Fourth (D): Convert this absolute change into a percentage change relative to the base year figure:
This forms the sequence: (B), (A), (C), (D).
This forms the sequence: (B), (A), (C), (D).