Match List-I with List-II:List-IList-II(A) Statements indicating 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 consecutive years(II) Comparative Statements(C) Statements showing profitability and financial position for different periods of time to give an idea about the changes between two or more periods(III) Ratio Analysis(D) Describes the significant mathematical relationship which exists between various items of a balance sheet and a statement of profit and loss(IV) Common-Size StatementsChoose the correct answer from the options given below:
- A(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
- B(A) - (IV), (B) - (I), (C) - (II), (D) - (III)
- C(A) - (III), (B) - (II), (C) - (I), (D) - (IV)
- D(A) - (III), (B) - (I), (C) - (II), (D) - (IV)
Solution & Step-by-step Explanation
Matching concepts with their specific definitions:Common-Size Statements (IV): Convert absolute values into percentages of a baseline common parameter (e.g., Net Revenue from Operations for Income Statement or Total Assets for Balance Sheet). Thus, (A) (IV).Trend Analysis (I): Observes variations and indices over long multi-year series horizons. Thus, (B) (I).Comparative Statements (II): Side-by-side comparative formats tracking absolute and relative changes across sequential terminal periods. Thus, (C) (II).Ratio Analysis (III): Arithmetical expressions relating distinct line items from financial records. Thus, (D) (III).This matches options sequence: (A) - (IV), (B) - (I), (C) - (II), (D) - (III).