Which of the following would be an amount computed using horizontal analysis?
A) The ratio of cost of goods sold to total sales for the current year.
B) The percentage change in the cash balance from last year to this year.
C) The difference between current assets and current liabilities at the end of the year.
D) The ratio of inventory to total assets at the end of the year.

Question

Quizplus · Accepted Answer

Horizontal analysis calculates the percentage change in financial statement line items over time, like the change in cash balance from last year to this year. The other options are ratios or differences that do not involve changes between years.

Which of the Following Would Be an Amount Computed Using