What type of analysis is indicated by the following? $\begin{array}{lrrrr}&&&\text { Increase (Decrease) }\&\text { Current Year } & \text { Preceding Year } & \text { Amount } & \text { Percent }\
\text { Current assets } & \$ 430,000 & \$ 500,000 & \$(70,000) & (14 \%) \
\text { Fixed assets } & 1,740,000 & 1,500,000 & 240,000 & 16 \%
\end{array}$
A) vertical analysis
B) horizontal analysis
C) liquidity analysis
D) common-size analysis

Question

What type of analysis is indicated by the following? $\begin{array}{lrrrr}&&&\text { Increase (Decrease) }\&\text { Current Year } & \text {  Preceding Year } & \text { Amount } & \text { Percent }\
\text { Current assets } & \$ 430,000 & \$ 500,000 & \$(70,000) & (14 \%) \
\text { Fixed assets } & 1,740,000 & 1,500,000 & 240,000 & 16 \%
\end{array}$
A) vertical analysis
B) horizontal analysis
C) liquidity analysis
D) common-size analysis

Quizplus · Accepted Answer

Horizontal analysis compares financial data over two or more periods, focusing on changes in amounts and percentages, as shown in the example.

What Type of Analysis Is Indicated by the Following A) Vertical Analysis B) Horizontal Analysis C) Liquidity Analysis D)

What Type of Analysis Is Indicated by the Following A) Vertical Analysis
B) Horizontal Analysis
C) Liquidity Analysis
D)