Horizontal analysis compares the change in each statement item from one year to the next.

Question

Quizplus · Accepted Answer

Horizontal analysis is a technique used to compare the change in each line item of financial statements from one period to another. It helps in analyzing the performance of a company over time and identifying trends and patterns in its financial data. Therefore, the statement "Horizontal analysis compares the change in each statement item from one year to the next" is true.

Horizontal Analysis Compares the Change in Each Statement Item from One