Match List-I with List-II:List-IList-II(A) Comparative statements(I) Operating Activities(B) Common Size Statement(II) Horizontal Analysis(C) Cash flow Analysis(III) Debt Equity Ratio(D) Ratio Analysis(IV) Vertical AnalysisChoose the correct answer from the options given below:
- A(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
- B(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
- C(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's match the analytical tools with their appropriate methodological descriptions:(A) Comparative statements: Analyze data across multiple time periods, which is a form of Horizontal Analysis. (II)(B) Common Size Statement: Compares items within a single period against a common base percentage, which is a form of Vertical Analysis. (IV)(C) Cash flow Analysis: Tracks the inflows and outflows of cash, categorized into sections like Operating Activities. (I)(D) Ratio Analysis: Computes relationship metrics between financial items, such as the Debt-Equity Ratio. (III)The correct sequence is (A) - (II), (B) - (IV), (C) - (I), (D) - (III).