Horizontal analysis is analysis in which
A)financial statement lines are expressed as a percent of the base (earliest) year.
B)all items are presented as a percentage of one selected item on the financial statement.
C)a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements.
D)ratio increases and decreases are presented for the past two accounting periods.

Question

Quizplus · Accepted Answer

Horizontal analysis is a type of analysis that involves comparing financial statement line items over a particular time period. In this analysis, the items on the financial statement are expressed as a percentage of a base year, which is usually the earliest year being analyzed. This allows for a comparison of how the financial statement items have changed over time in terms of percentage.

Horizontal Analysis Is Analysis in Which