To carry out a comparative analysis of a firm's financial statements over a period of more than 3-4 years, one should use ________.
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A. B. C. D.D
To carry out a comparative statement analysis over a long period of time, you can express the financial statement numbers in terms of a common base. This base could be one of the years for which financial statements are available or can be arbitrarily set to a number like 100. This process then converts the financial statement quantities into indices and these can be analyzed more conveniently.