Differentiate between static and dynamic analysis


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SR.NO Dynamic analysis Static analysis
1. It requires financial statements of 2 or more years. It requires financial statements of one year.
2. It gives information in absolute as well as percentage form. It gives information in percentage form only.
3. It deals with same item of different years. Ti deals with different items of the same year.
4. It is used for times series analysis. It is used for cross section analysis.

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