Horizontal analysis
A)Is a tool used to evaluate changes in financial data across time
B)Is also called vertical analysis
C)Is the presentation of financial ratios
D)Is a tool used to evaluate financial statement items in terms of a specific base amount
E)Is a tool used to evaluate changes in financial data across time and is the presentation of financial ratios

Question

Quizplus · Accepted Answer

Horizontal analysis is specifically used to evaluate changes in financial data across time. Vertical analysis, on the other hand, is also called common-size analysis and is used to evaluate financial statement items in terms of a specific base amount. Presentation of financial ratios is a separate concept that may be used in either type of analysis.

Horizontal Analysis