Horizontal analysis of financial statements includes the
A)calculation of liquidity ratios.
B)calculation of profitability ratios.
C)calculation of percentage changes from the previous year.
D)evaluation of data relative to a base year.

Question

Quizplus · Accepted Answer

Horizontal analysis involves calculating percentage changes in financial statement items from one year to the next to identify trends over time.

Horizontal Analysis of Financial Statements Includes the