In horizontal analysis
A)changes in a company's operating results and financial position over time are expressed in percentages as well as dollars
B)monetary relationships between items on the financial statements of a period are expressed in percentages as well as dollars
C)financial statements are expressed only in percentages
D)liquidity ratios, generally involving components of the company's working capital, are computed

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data over time, expressing changes in both dollars and percentages to show trends in a company's operating results and financial position. It is different from vertical analysis, which expresses monetary relationships between items on the financial statements of a period only in percentages. Liquidity ratios are not specific to horizontal analysis.

In Horizontal Analysis