Horizontal analysis focuses on:
A)the balance sheet only.
B)percentage changes in comparative financial statements.
C)the change in key financial statement ratios over a certain time frame.
D)the changes in individual financial statement amounts as a percentage of some related total.

Question

Quizplus · Accepted Answer

Horizontal analysis compares percentage changes in financial statements over time. This involves comparing financial statements from different periods to calculate changes in key line items or accounts. Such comparison provides insights into a company’s financial health and performance trends over time.

Horizontal Analysis Focuses On