Match List I with List II

$\begin{array}{|cccc|}\hline \multicolumn{2}{c}{\text{LIST I}}& \multicolumn{2}{c}{\text{LIST II}}\\ \text{A.}& \text{Horizontal Analysis}& \text{I.}& \text{Common size statement}\\ \text{B.}& \text{Vertical Analysis}& \text{II.}& \text{Comparative statement}\\ \text{C.}& \text{External Analysis}& \text{III.}& \text{Access to all published and unpublished information}\\ \text{D.}& \text{Internal analysis}& \text{IV.}& \text{Access only to published information}\\ \hline\end{array}$

Choose the correct answer from the options given General 18,000 General fund 10,00,000 below:

The correct option is A-II, B-I, C-IV, D-III.

Let us understand the logic behind matching each item in List I with its correct definition or description in List II step-by-step:

1. A. Horizontal Analysis matches with II. Comparative statement
Horizontal analysis (also known as trend analysis) involves reviewing a company's financial statements over multiple periods (years or quarters). It compares financial data horizontally across time to identify trends, growth rates, and changes. Therefore, a comparative statement (which lists figures side-by-side for different periods) is the primary tool used for horizontal analysis.

2. B. Vertical Analysis matches with I. Common size statement
Vertical analysis is a method of financial statement analysis where each entry in a statement is represented as a percentage of a base figure within the same statement (for example, expressing every item in the income statement as a percentage of net sales). This is precisely what a common-size statement does, allowing for comparison of relative proportions within a single period.

3. C. External Analysis matches with IV. Access only to published information
External analysis is performed by stakeholders outside the organization, such as investors, creditors, or government agencies. Because they do not have access to the internal records of the company, they must rely solely on publicly available sources. Thus, external analysts have access only to published information (like audited annual reports, press releases, etc.).

4. D. Internal analysis matches with III. Access to all published and unpublished information
Internal analysis is conducted by the management, employees, or internal auditors of the organization. Because they operate within the company, they have full access to internal books of accounts, detailed departmental reports, and other proprietary data. Thus, internal analysts have access to all published and unpublished information.

Combining these matches, we get:
A → II
B → I
C → IV
D → III