When Conducting Comparative Analysis by Reviewing Consecutive Balance Sheets

Multiple Choice

When conducting comparative analysis by reviewing consecutive balance sheets,

A) all items on the balance sheet in Year t must be divided by their corresponding value in Year t-1 and subtract 1.
B) all items on the balance sheet in Year t-1 must be subtracted from their corresponding value in Year t.
C) all items on the balance sheet in Year t must be divided by net income in Year t-1.
D) Both A and B are correct.