What enables business comparisons with previous years?

The analysis of the balance sheet is a critical tool for enabling business comparisons with previous years. By examining a company's balance sheet, one can assess its financial position at a specific point in time. It includes detailed information about assets, liabilities, and equity, allowing for a clear understanding of the overall financial health of the business over different periods.

When comparing balance sheets from previous years, businesses can identify trends such as growth in assets, changes in liabilities, and shifts in equity. These comparisons can reveal important insights into a company's performance, help in assessing financial stability, and inform strategic decision-making. Understanding how these financial figures have changed over time enables businesses to track their progress and make informed predictions about future performance.

While other options like client surveys, market research, and employee feedback provide valuable insights into different aspects of a business, they do not offer the same direct financial comparison capabilities that a balance sheet does. Client surveys and employee feedback focus more on subjective experiences and perceptions, while market research provides data about external conditions rather than the internal financial status of the company.