In horizontal analysis, each item is expressed as a percentage of the
A) net income amount.
B) stockholders' equity amount.
C) total assets amount.
D) base-year amount.

Question

Quizplus · Accepted Answer

In horizontal analysis, each item is expressed as a percentage of a base-year amount. This allows for comparison over time of how each individual item has changed as a percentage of its original amount.

In Horizontal Analysis, Each Item Is Expressed as a Percentage