Horizontal analysis evaluates a series of financial statement data over a period of time
A) that has been arranged from the highest number to the lowest number.
B) that has been arranged from the lowest number to the highest number.
C) to determine which items are in error.
D) to determine the amount and/or percentage increase or decrease that has taken place.

Question

Quizplus · Accepted Answer

Horizontal analysis is used to determine the amount and/or percentage increase or decrease that has taken place over a period of time in a series of financial statement data. It is not concerned with the arrangement of the data or identifying errors.

Horizontal Analysis Evaluates a Series of Financial Statement Data Over