Horizontal analysis is analysis:
A) Or comparison of a firm's current financial measures to those of previous periods
B) In which all items are presented as a percentage of a base item on the same financial statement
C) In which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements
D) Of all ratios that increased or decreased over past accounting periods

Question

Quizplus · Accepted Answer

Horizontal analysis involves comparing a company's financial measures across different time periods to identify trends and changes.

Horizontal Analysis Is Analysis