Which analysis compares line items on an income statement with those from the prior year?
A) Horizontal analysis
B) Vertical analysis
C) Statement analysis
D) None of the above are true.

Question

Quizplus · Accepted Answer

Horizontal analysis compares financial data across different periods, such as comparing line items on an income statement from one year to those of the previous year, to identify trends and changes over time.

Which Analysis Compares Line Items on an Income Statement with Those