The percentage change in long-term liabilities between two balance sheet dates is an example of:
A) profitability analysis.
B) solvency analysis.
C) horizontal analysis.
D) vertical analysis.

Question

Quizplus · Accepted Answer

The percentage change in long-term liabilities over time is measured through horizontal analysis, which compares financial data from different periods to determine the increase or decrease in a company's financial performance or position. Profitability analysis focuses on a company's ability to generate profits, while solvency analysis focuses on a company's ability to meet long-term financial obligations. Vertical analysis involves comparing different items within the same financial statement.

The Percentage Change in Long-Term Liabilities Between Two Balance Sheet