The dollar change and percentage change in the accounts receivable account from 2013 to 2014 is calculated for Allison Corporation.This is an example of
A)horizontal analysis
B)vertical analysis
C)profitability analysis
D)solvency assessment

Question

Quizplus · Accepted Answer

The calculation of dollar change and percentage change in the accounts receivable account from 2013 to 2014 is an example of horizontal analysis, which compares financial data over different time periods to identify trends and changes. Vertical analysis compares financial data within the same period to determine the composition of accounts, profitability analysis looks at earnings and expenses to determine profitability, and solvency assessment considers a company's ability to meet its financial obligations over the long-term.

The Dollar Change and Percentage Change in the Accounts Receivable