The document discusses comparative financial statements, which present elements of financial statements like balance sheets and income statements from two or more periods side by side for easy comparison. Comparative balance sheets show assets, liabilities, and equity accounts from different periods, allowing analysis of changes. Comparative income statements similarly present revenue, expenses, profits, etc. over time. Comparative statements are useful for trend analysis and identifying strengths and weaknesses, but differences in accounting methods or firm size can limit comparability.