Which of the following is NOT a type of comparative statement analysis?

Which of the following is NOT a type of comparative statement analysis?

• A. Comparative income statement analysis
• B. Comparative cash flow analysis
• C. Comparative BS analysis
• D. Comparing to industry standards

Answer: (B)

Comparative statement analysis involves evaluating financial statements over different periods or comparing the financial condition of different entities to identify trends and performance metrics. The types of comparative statement analysis typically include comparative income statements, comparative balance sheets, and methods for comparing to industry standards. Comparative cash flow analysis, however, while it may involve looking at changes in cash flow over periods or between companies, is not traditionally categorized under the main types of comparative financial statement analysis. Instead, cash flow analysis tends to be more focused on operational efficiency and liquidity rather than a direct comparison using specific financial statements. Hence, identifying cash flow analysis as not fitting within the standard comparative statement analysis framework provides clarity on why it stands out in the context of this question.

Comparative statement analysis involves evaluating financial statements over different periods or comparing the financial condition of different entities to identify trends and performance metrics. The types of comparative statement analysis typically include comparative income statements, comparative balance sheets, and methods for comparing to industry standards.

Comparative cash flow analysis, however, while it may involve looking at changes in cash flow over periods or between companies, is not traditionally categorized under the main types of comparative financial statement analysis. Instead, cash flow analysis tends to be more focused on operational efficiency and liquidity rather than a direct comparison using specific financial statements.

Hence, identifying cash flow analysis as not fitting within the standard comparative statement analysis framework provides clarity on why it stands out in the context of this question.