Which one of the following statements describes horizontal analysis? Horizontal analysis is:
A)a comparison between two or more companies in the same industry sector.
B)an analysis of the components of total assets.
C)a comparison of all accounting figures in relation to a single key figure such as total assets.
D)an analysis of comparable accounting figures over a period of time.

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing accounting figures over a period of time, typically in a financial statement, to understand the changes and trends that have occurred. It helps to identify strengths, weaknesses, and opportunities for improvement in a business's financial performance.

Which One of the Following Statements Describes Horizontal Analysis? Horizontal