Which of the following can be used to simultaneously view the relationships between all numbers on the balance sheet or income statement?
A) Horizontal analysis
B) Vertical analysis
C) Ratio analysis
D) Trend analysis

Question

Quizplus · Accepted Answer

Vertical analysis is the only technique out of the four that provides a percentage breakdown of each line item on the income statement or balance sheet. This allows for easy comparison and analysis of the relationships between all numbers on the statement or sheet. Horizontal analysis looks at changes in numbers over time, ratio analysis focuses on specific ratios, and trend analysis examines longer-term patterns in data.

Which of the Following Can Be Used to Simultaneously View